The International Longshoremen’s Association (ILA) contract that includes 3 dozen ports and 45,000 dockworkers, covering Maine to the Gulf of Mexico near Texas, is set to expire on September 30th.
If the ILA and the U.S. Maritime Alliance cannot reach an agreement by this deadline, this would lead to a strike. This strike would land during the start of the vital holiday container shipping season.
A shutdown, or even a partial slowdown at these key ports, could cost billions of dollars, affecting nearly every industry across the country. With ports already running near capacity, these shutdowns or slowdowns could greatly impact lead times on certain items. Experts are optimistic that a deal will be reached before a strike takes place.
While experts predict a deal to be struck, the effects of the looming election could come into play. Current President Joe Biden has been very labor-friendly; the announcement of his withdrawal from this year’s presidential election has the potential to cause further complications during the negotiation process.
In closing, stakeholders should continue to monitor the situation as ILA and the U.S. Maritime Alliance continue to negotiate a deal. While the outlook on a potential deal is optimistic, the future is unpredictable and remains to be seen.