Currently there are ongoing negotiations between the International Longshoreman Association (ILA) and the United States Maritime Alliance, Ltd. (USMX) which may halt operations due to a potential strike on October 1st.
According to Supply Chain Dive News, in June the ILA canceled a planned meeting with USMX due to the use of automated truck gates at ports, which the ILA believes breached their contract. This has worried shippers and other stakeholders that the deal will not be reached in time before the contract expires September 30th. The ILA threatened to strike if a contract is not completed by the expiration date, and they will not resume the conversation of a contract until the issues with the auto gates are resolved with USMX. And they do not want any interference from the Biden Administration and the Department of Labor.
On September 17th the ILA released information on their reasoning for the strike being that their workers should “stand and fight a higher level of wages” against USMX. With this current contract coming to an end in less than two weeks, the ILA believes this is the time to fight for fair wages.
The Alliance for Chemical Distribution (ACD) has released statements that they strongly urge both sides to begin negotiations to avoid a strike. They emphasize that a work stoppage could drastically decrease the volume of imports, leading to significant delays and increased congestion at ports. Such disruptions would not only impact the flow of goods but could also lead to rising costs for consumers and businesses alike. Additionally, the chemical industry, which relies heavily on timely imports to maintain production schedules, could face severe shortages, jeopardizing essential services and products. The ACD warns that if a resolution is not reached, the ramifications could ripple through the entire supply chain, affecting everything especially the chemical industry.