Overall Market Update – Including Details on the Increasing Threat of October 1 ILA Labor Strike
Asia to USA Cargo volume is still strong, and we believe it will maintain a robust pace until CNY (January 29, 2024) because of the following reasons:
1. Consumer confidence is becoming stronger
2. A rate cut by the Fed is likely in September
3. Stock Market repeatedly hitting all-time highs
4. With the potential for a second term for Donald Trump, there is the possibility of higher tariffs beginning in 2025. Importers are gearing up to bring in product in advance of these potential increases.
5. ILA President Harold Daggett says the threat of the October 1st Strike at US Atlantic and Gulf Ports is growing more likely. Cargo will be pushed to be front-loaded as much as possible to compensate for potential delays in cargo arrival. Please see the article below from the ILA’s website.
We note that additional capacity has been added to the USWC, which is helping relieve some of the cargo pressure, but the overwhelming cargo surge is still overpowering the market. Please reach out to your BOC representative to help facilitate the movement of your cargo. Thank you for all your support.
https://ilaunion.org/2024/07/ila-president-harold-daggett-says-threat-of-october-1st-strike-at-atlantic-and- gulf-coast-ports-growing-more-likely/)
ILA President Harold Daggett Says Threat of October 1st Strike At Atlantic and Gulf Coast Ports Growing More Likely
JULY 12, 2024
NORTH BERGEN, NJ – (July 12, 2024) The leader of the International Longshoremen’s Association says the threat of a strike at all Atlantic and Gulf Coast Ports is becoming more likely as time is growing short before the current contract expires in 80 days, on September 30, 2024. Harold J. Daggett, ILA President and the union’s Chief Negotiator, said that the employers represented by United States Maritime Alliance (USMX) are running out of time to negotiate a new Master Contract agreement and avoid and coastwide strike on October 1, 2024.
“Only 80 days remain before the end of our current contract and we are waiting on USMX,” said ILA President Daggett. “The actions of violating our current Master Contract by some of their members caused us to cancel scheduled negotiations with USMX in early June.”
The ILA canceled Master Contract talks with USMX after discovering that APM Terminals and Maersk Line were utilizing an Auto Gate system, which autonomously processes trucks without ILA labor. This system, initially identified at the Port of Mobile, Alabama, is reportedly being used in other ports as well.
The ILA said on June 10, 2024, that it would not meet with USMX until the Auto Gate issue is resolved. Additionally, the union is still waiting on results from an audit for jobs created out of new technology, a report they have been anticipating for almost two contract periods. The ILA has observed an increasing number of IT personnel on marine terminals, with concerns that APM and Maersk’s IT departments in Charlotte, North Carolina, are encroaching on their jurisdiction.
President Daggett said the ILA rank-and-file members are 100 percent behind him and are willing the “hit the streets” on October 1, 2024, if the union’s contract demands are not met.
“We will not entertain any discussions about extending the current contract, nor are we interested in any help from outside agencies to interfere in our negotiations with USMX,” said President Daggett. “This includes the Biden Administration and the Department of Labor.”
Whenever USMX resumes negotiations, the ILA said it expects shipping companies to recognize the contributions ILA longshore workers made during the pandemic, when ports remained open, allowing companies to record billion-dollar profits.
About the International Longshoremen’s Association:
The International Longshoremen’s Association (ILA) is the largest union of maritime workers in North America, representing 85,000 longshore workers along the East Coast, Gulf Coast, Puerto Rico, Great Lakes, and major U.S. rivers. Its membership includes longshore workers in Eastern Canada and the Bahamas. The ILA is dedicated to ensuring fair labor practices and protecting the rights and jobs of its members.
