The ILA, after concluding meetings on September 5, has finalized its contract demands, which include a 77% wage increase over the next six years. This proposed increase significantly outpaces the 32% wage bump agreed to by West Coast longshoremen in 2023. The union is also seeking a firm commitment against the use of automation at ports, a point of contention that has stalled negotiations.
Potential Impact on Supply Chains
According to Sea-Intelligence, a supply chain data service, a one-day strike by the ILA could result in a five-day backlog at East and Gulf Coast ports. More extended strikes could have even more severe consequences, with a one-week strike potentially causing delays until mid-November, and a two-week strike extending disruptions into early 2025.
The ILA and the U.S. Maritime Alliance (USMX) have until September 30 to reach a new collective bargaining agreement and avert a strike. However, with no talks scheduled in the lead-up to the deadline, the threat of a strike and its potential impact on supply chains looms large.
