Toronto, September 17, 2024
October 1, 2024, is the date set by the International Longshoremen’s Association (ILA) to begin a strike if a new labour contract is not agreed upon with the United States Maritime Alliance (USMX). The main areas of dispute in the negotiations relate to wages, the use of automation, health care, and container royalties. The current six-year ILA master contract covering dockworkers and other port employees from Maine to Houston expires on September 30th. Formal talks have reached an impasse and no new contract talks have been scheduled at this point.
A strike by the ILA, which represents as many as 85,000 longshoremen who work on the Atlantic and Gulf Coasts, Great Lakes, and major U.S. rivers, will have a significant impact on the flow of goods transiting the U.S.. Many importers have proactively taken steps to deal with this pending labour action by diverting cargo to U.S. West Coast ports. A recent trend by U.S. retailers suggests that they have been rushing in seasonal goods to mitigate the risk of cargo getting stranded during a strike. The latter was made evident by last month’s container volume statistics that show that imports of U.S. container cargo in August jumped 12.9% from a year ago, resulting in port congestion and delayed cargo movement at major ports. Coupled with this is the fact that, if the strike does come to fruition, one would expect heavy demand for air cargo, which would likely result in airfreight rate spikes and capacity shortages.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
