The ILA strike at East and Gulf Coast ports has officially ended, with cargo operations set to resume today. The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) announced a deal on wages and agreed to extend their contract until January 15, 2025. More negotiations will continue to address other outstanding issues.
The strike, which lasted three days, stopped operations at multiple ports due to stalled negotiations over wages and automation concerns in the ports. Prior to the strike, both parties exchanged counteroffers, but the union deemed the USMX offer insufficient. With the wage deal agreed upon, the strike has ended, and port operations can start again right away. Several ports have already announced reopening plans today.
Operations are going to resume, but there are still big backlogs that will take 2-3 weeks to clear. Many carriers declared a state of emergency, which could lead to extra charges for shippers, like containers being unloaded at the wrong ports. Detention and demurrage charges will also start again, and carriers plan to introduce extra fees in mid-October, though these may not always happen. The effects of the strike could reduce export capacity from Europe, possibly leading to temporary rate increases in the coming weeks.
If you have any questions or concerns please reach out to your local Radius office!
