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Shipper Alert – ILA Strike Is On!

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27 October 2024

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The International Longshoremen’s Association (ILA) is officially on strike, shutting down ports all along the East and Gulf Coast ports.

Reportedly, there actually was negotiation between the parties late into Monday night. But the ILA’s deadline hit, and the union went on strike.

At one point, the United States Maritime Alliance (USMX) reported that it upped its wage offer to a 50% increase over the course of a new 6-year contract. However, that was not enough for the ILA to accept. The USMX also requested the union extend the current contract to keep the ports open while the parties continue to negotiate. The ILA has been clear up to this point that it would not be doing that and rejected the USMX’s request.

This is the first time the ILA has orchestrated a coastwide strike since 1977. The economic costs of this strike are estimated to be in the billions of dollars per day.

One such estimate from JP Morgan puts the economic damage at $5 billion per day, as reported by David Shepardson, Doyinsola Oladipo and Lisa Baertlein in Reuters.

The Biden/Harris Administration made no moves to mediate negotiations or prevent the strike and has said it will not enact the Taft-Hartley Act to stop the strike. If things are not worked out between the ILA and USMX quickly, the administration’s resolve to appease the union will be tested. The significance of the economic damage of an ILA strike cannot be overstated, and the economy is widely reported as the number one issue for voters ahead of the presidential election.

Obviously, we’re watching this situation carefully and will continue to blog about it.

For the lead-up to this moment, check out our ILA Strike Watch 2024 posts: