Update on a Possible Strike Between the ILA and USMX: What to Know

At More Than Shipping, we are committed to informing you about the ongoing negotiations between the International Longshoreman Association (ILA) and United States Maritime Alliance, Ltd. (USMX) and how it could affect your supply chain operations.

The existing contract between USMX and ILA expires on September 30th. Despite USMX’s efforts to resume discussions with ILA on a new Master Contract, they have faced challenges in arranging a meeting with ILA leadership. To provide updated information to the public and stakeholders, USMX is regularly sharing negotiation updates on its website.

September 23rd update from USMX:

“Despite additional attempts by USMX to engage with the ILA and resume bargaining, we have been unable to schedule a meeting to continue negotiations on a new Master Contract. We remain prepared to bargain at any time, but both sides must come to the table if we are going to reach a deal, and there is no indication that the ILA is interested in negotiating at this time. USMX has received outreach from the Department of Labor, the Federal Mediation & Conciliation Service (FMCS), and other federal agencies and we will keep them up-to-date on the status of negotiations. We would be open to working with the FMCS, as we have done successfully in the past, but that is only possible if both sides agree to mediation. Our goal remains the same – we want to bargain and avoid a strike, but time is running out if the ILA is unwilling to return to the table.”

A potential ILA strike will impact supply chains, leading to delays in cargo movement, increased costs, and logistical challenges for businesses relying on U.S. East Coast and Gulf ports. Longer strike durations may exacerbate disruptions, affecting import and export activities, container availability, and overall operational efficiency.

Operational Updates

To mitigate potential disruptions, freight forwarders, carriers, and other parties are actively exploring alternative options for cargo acceptance and routing by trade in case of a prolonged labor strike. It is recommended that shipping customers discuss specific shipment options with their shipping partners. At MTS Logistics, we are collaborating directly with customers to expedite bookings on earlier vessels where possible and prioritize the movement of import containers from terminals before any potential disruptions take place.

For imports, shippers are encouraged to expedite the readiness of import documentation and customs clearance to facilitate the prompt retrieval of cargo from terminals before any potential work stoppage. In the event of a strike, cargo left on the terminal at the affected ports will not be accessible.

It is also encouraged that customers maintain close communication with their special shipping partners to convey their supply chain needs, which will be pivotal in devising customized contingencies if necessary.

Ocean Terminal Updates

All ports and terminals along the U.S. East and Gulf Coasts, from the northeast border with Canada to the southern border with Mexico, operate under an overall ILA Master Labor Agreement and District and Local guidelines. If a labor disruption takes place, all ports and connected services will be impacted. This includes functions of moving cargo ashore, gating cargo into and out of marine terminals, line handling, etc. Other functions, such as rail and trucking connectivity, will also see an impact as cargo will not move out of terminals to the next destination.

Cargo Onboard Vessels

We anticipate vessels en route to ILA-impacted ports will sit at anchor in the short term. Port calls may be adjusted as per individual carrier’s guidelines and as the situation requires and allows.

Demurrage & Detention

As shipping experts, we encourage shippers to make all efforts to move equipment prior to October 1st. Many terminals are offering extended and additional gate hours to accommodate demand. Please check terminal operator websites for the latest details. With respect to Demurrage & Detention, the following will apply:

• For any containers within the demurrage or detention free-time period at the start of the strike, carriers will suspend the free-time clock until the strike concludes, and the free-time period will resume at that time.
• For any containers in demurrage at the time of the strike, carriers will apply demurrage charges in line with the policy of the terminal operator.
• For any containers in detention at the time of the strike, carriers might suspend detention charges for the duration of the strike, this needs to be verified with the carriers and terminal operators directly.
• For operating refrigerated containers remaining on terminal during the strike, any electricity and/or monitoring charges assessed by the terminal will be for the account of the cargo owner.

Demurrage, Detention and Storage Handling:

In the event of an industrial action, affected days will be classified as “shut out” for import and export D&D, meaning they will not be charged in D&D calculations. Additionally, any weekends between shut out days will also be considered non-chargeable.

Import Demurrage & Storage:

• If the port is closed: you will not be able to pick up import containers that have already been discharged. Most carriers and the marine terminals will not charge storage for those days.
• If the port is open: you will be able to collect your containers. However, containers not picked up within the free time will incur Import Demurrage charges.

Import Detention:

• If the port is closed: you will not be able to return containers to the marine terminal. Most carriers will not charge Import Detention for those days. However, empty containers may continue to be accepted at inland and/or near dock depots.
• If the port is open: containers should be returned within the free time or be subject to Import Detention fees.

Export Demurrage & Storage:

• If the port is closed: you will not incur demurrage on days when the terminal is closed. Carriers and the marine terminals will not charge storage for those days.
• If the port is open: standard terms from carriers and terminal tariffs and policies will apply.

Export Detention:

• If the port is closed: you will not be able to return export full containers. Carriers will not charge Export Detention for those days.
• If the port is open: you will be able to return export full containers. However, containers not returned within the free time will incur Export Detention charges.

Equipment & Chassis:

• Container Empty Returns: Shippers and motor carriers should hold their empties during a potential work stoppage.
• Chassis: Many shipping partners will not cover or reimburse any chassis or other 3rd-party charges connected to the work stoppage.

We will continue to keep our readers updated of the situation. Should you need more information or support, please reach out to your shipping partner.