ILA's East and Gulf Coast Port Strike Looms as Stakeholders Brace for Impact

A labor strike at U.S. East Coast and Gulf Coast ports appears poised to occur just after midnight on Oct. 1, despite any last-ditch efforts as of press time to prevent the strike from occurring.

The International Longshoremen’s Association made no mention of changing plans to stage a walkout at the East and Gulf ports, blaming the looming strike on union members’ employers, which are represented by the United States Maritime Alliance.

The ILA and the USMX have been at an impasse over a new labor agreement to replace the old one that expires at midnight on Sept. 30 (see 2409270036).

“The Ocean Carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA Longshore Workers an unacceptable wage package that we reject,” the ILA said in a Sept. 30 statement. “ILA longshore workers deserve to be compensated for the important work they do keeping American commerce moving and growing. It’s disgraceful that most of these foreign-owned shipping companies are engaged in a ‘Make and Take’ operation: They want to make their billion-dollar profits at United States ports, and off the backs of American ILA longshore workers, and take those earnings out of this country and into the pockets of foreign conglomerates."

USMX late last week said it filed an Unfair Labor Practice (ULP) charge with the National Labor Relations Board, with the hope that the NLRB would grant immediate injunctive relief and compel the ILA to resume bargaining.

"USMX has been clear that we value the work of the ILA and have great respect for its members. We have a shared history of working together and are committed to bargaining,” USMX said in a Sept. 26 statement. The group noted the ILA’s “repeated refusal to come to the table and bargain” over a new master contract.

But the ILA scoffed at USMX’s announcement, calling USMX’s actions to file suit a “publicity stunt.”

“USMX filing these charges four days before the expiration of the current Master Contract clearly illustrates what poor negotiating partners they have been,” the ILA said. “If it wasn’t for the ILA engaging in serious and productive negotiations, most of the local agreements would not have been settled over the past year.”

One major uncertainty is how long a port strike might last. Pundits have said that President Joe Biden could invoke the Taft-Hartley Act and compel union members to go back to work.

But container shipping expert Lars Jensen said in a LinkedIn post that “by vilifying ‘foreign conglomerates,’ [the ILA] try to make it more difficult for President Biden to invoke Taft-Hartley.”

The looming strike also comes amid other events slowing down the movement of cargo to and from the ports. A three-day work stoppage by union members at the Port of Montreal affecting the Viau and Maisonneuve terminals, both of which are operated by Termont, began on Sept. 30 and is expected to last through the morning of Oct. 3. Shippers have been eyeing the Canadian ports as an alternative to East Coast ports.

Southeastern ports such as the Port of Charleston also temporarily paused some operations as Hurricane Helene passed through late last week, while the inland transportation network to and from Southeastern ports has been seeking to fully restore operations in the hurricane's aftermath.

In the meantime, shippers are bracing for Oct. 1.

The CBP said in a Sept. 30 cargo systems message that vessels arriving with cargo intended for unlading at potentially affected ports may need to consider alternative routing. Reporting of vessel arrival, vessel entry, and manifest updates (such as updating the port of unlading, associated entries, and in-bond movement, if applicable) will continue to be required of vessels arriving at impacted ports, CBP said, while all other applicable legal requirements, such as those under the Jones Act (46 U.S.C. § 55102), will also continue to be in effect.

The National Customs Brokers & Forwarders Association of America told members in a morning advisory that "given these recent developments, NCBFAA members are encouraged to review the relevant VOCC [vessel-operating common carriers] business advisories and the Commission’s industry advisory regarding the potential labor unrest. NCBFAA members licensed or registered as non-vessel-operating common carriers (NVOCCs) should review current operations, service contracts with VOCCs, and contracts with customers, including tariff and non-tariff rate vehicles, to assess the potential impact of the impending strike. Please consult your attorneys for legal counsel on the appropriate actions to take in preparation of this developing situation."

Ports are also bracing for the strike. The Jacksonville Port Authority in Florida said on Sept. 30 that it expects the strike to impact about one-third of JAXPORT’s business, particularly international container volumes operated by SSA Jacksonville, as well as international vehicle volumes.

The remaining two-thirds of JAXPORT’s business, including the majority of Puerto Rico cargo, will continue normally, the port authority said. However, “because JAXPORT’s terminal operators establish their own operating hours at their gated facilities, customers are encouraged to contact their terminal operator directly to confirm their specific operating hours and any operational impacts related to the potential strike,” JAXPORT said.

NCBFAA provided a webpage that will update members on strike-related matters.