Introduction – ILA (International Longshoremen’s Association) which is the largest union of Maritime workers in USA having a strength of 85K employees might go for strike from 1st Oct 2024.
The current agreement between the ILA workers and their employer USMX (United Stated Maritime Alliance) is running since 6 years and will end on 30th Sept 2024. ILA has put up some demands regarding wage increase + job protection from complete automation + others .
AS per recent news – ILA union president Herald Dagget has rejected the offer from USMX as it was not meeting the unions criteria.
The last union strike was in 1977 and since last 50 years there has been no strike.
Impact – This will lead to a Red Sea Challenge like situation leading to decrease in vessel availability and container imbalance.
Presently there are 147 vessels planned to arrive US East Coast around 1st oct 2024. In case of a strike the vessels would have to wait anchored before getting a berthing schedule.
Two lines have added surcharge anticipating this challenge
- CMA has added 1500 USD per 20’
- Hapag has added 1000 USD per 20’
Conclusion – USMX and ILA will come out with a mutually agreed solution as this can lead to a loss of billions of Dollars to USA and the world. If this could be avoided since last 50 years, It can done even now.
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