Shipper Alert – ILA Strike Is On!
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:
ILA Strike Watch 2024 Lead-Up & Posts
ILA Already Threatening Strike
ILA Stance Is Worse Than Just Threatening Strike
We Have to Talk About the ILA Strike Threat
How to Prepare for Potential ILA Port Disruption
No One Knows What Will Happen with ILA Port Disruption
Early Peak Season, High Freight Rates, & 5 Factors Shaping Ocean Freight Shipping 2024
ILA Strike Watch 2024: Cancelled Talks & Strike Threat Increase
Are There Any Signs the Early Peak Season Is Slowing Down?
ILA Strike Watch 2024 – US Trade Groups Ask Biden to Get ILA to Negotiation Table
ILA Strike Watch 2024: Biden No, Trump Yes?
ILA Strike Watch 2024: ILA Says Strike More Likely
ILA Strike Watch 2024: Union Rejects Wage Offer & Prepares to Strike
ILA Strike Watch 2024: With 1 Month Till Strike, ILA Flips on Mediation
ILA Strike Watch 2024: ILA Announces Unanimous Support for Strike
ILA Strike Watch 2024: Will White House Stop Strike?
ILA Strike Watch 2024: Biden Won’t Stop Strike
