February 27, 2025

Master Contract Agreement - USMX and ILA ratify new 6 year contract

On the 7th February the International Longshoreman Association released a statement on their website stating "The full International Longshoremen’s Association Wage Scale Committee today gave unanimous approval to the new USMX-ILA Master Contract, paving the way for the ratification vote by ILA rank-and-file members that has been scheduled for Tuesday, February 25, 2025." 

The ILA posted a further update yesterday confirming that a new six year agreement had been made.

"Rank-and-File Members of International Longshoremen’s Association At Atlantic and Gulf Coast Ports Overwhelmingly Ratify Provisions of New Six-Year Master Contract With United States Maritime Alliance With Nearly 99 Percent Voting In Favor; Landmark Agreement Includes Record Wage Increases, Protections Against Automation and Will Be In Effect until September 30, 2030"

UPDATE: January 8th 2025

East Coast Port Strike 2025 - Tentative Agreement Reached

On the 8th January, 2025, the USMX-ILA released a joint statement after a period of negotiation this week. A tentative agreement has been reached on the Master Contract that is subject to ratification.

“We are pleased to announce that ILA and USMX have reached a tentative agreement on a new six-year ILA-USMX Master Contract, subject to ratification, thus averting any work stoppage on January 15, 2025,” the two sides said in a joint statement. “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coast ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong.” 

“This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace.” 

December 30th, 2025

As the deadline for the Master Agreement extension approaches on January 15, 2025, speculation is increasing that a port strike may impact the East Coast of the United States. 

Update: Latest announcements from USMX & ILA

• The media has reported that President-Elect Trump will support the ILA’s concerns in relation to the pending contract. This was further confirmed by the International Longshoreman Association via a posting on the ILA website on the 15th December pertaining to a recent meeting between Trump and ILA President Harold J. Daggett and ILA Executive Vice President Dennis A. Daggett. It stated, “President Trump’s welcomed message of support for the 85,000 ILA members this past Thursday was a major boost for the ILA as it hopes to secure a new Master Contract with USMX before the January 15, 2025, deadline.”
• On the 12th December, USMX released a statement on their website acknowledging the support of the ILA. “We appreciate and value President-elect Trump’s statement on the importance of American ports. It’s clear President-elect Trump, USMX, and the ILA all share the goal of protecting and adding good-paying American jobs at our ports. But this contract goes beyond our ports – it is about supporting American consumers and giving American businesses access to the global marketplace – from farmers, to manufacturers, to small businesses, and innovative start-ups looking for new markets to sell their products.”
• On the 20th December, USMX released a statement "A new Master Contract is essential to keeping our ports open and our supply chains strong. That is why USMX has tentatively agreed to a 62% wage increase for ILA members over the next six years, contingent upon finalizing all outstanding issues—a historic leading wage increase that showcases our commitment to American workers. Beyond the wage increase, central to successfully reaching a new long-term agreement is how we can also strengthen the ability of USMX members to make critical investments in technology and infrastructure to densify and improve the safety, productivity and efficiency of our ports, which provides a direct benefit to both ILA members and businesses in nearly every sector of the U.S. economy. American businesses rely on continuous improvements at our ports to help streamline their supply chains through expediting cargo turn times, attracting more vessel calls, and increasing overall capacity to meet their growing business demands on the export or import side." 
• Ocean carriers are preparing for a potential strike on the East Coast and Gulf ports. On December 24th, Hapag-Lloyd issued an update on a Work Disruption Surcharge (WDS) and Work Interruption Destination Surcharge (WID), effective January 20, 2025. The additional surcharge will only be added should a port strike take place.
• The following advice was issued In a statement on December 30th by shipping line Maersk "Considering the status, we strongly encourage our customers to pick up their laden containers and return empty containers at U.S. East and Gulf Coast ports before January 15. This proactive measure will help mitigate any potential disruptions at the terminals."

To date, no resolution has been made at the negotiation table with port automation being a key topic of dispute. With less than a month to go before the master contract extension date of January 15th, 2025, supply chain professionals must start to consider potential alternatives for their freight exports and imports into the United States.

With block space air freight allocations to and from the United States, U.S. warehousing footprint and own asset-based domestic trucking network, we have the capability to support your business.

Charter options are also available upon request to support with any line-down critical situations.

Should a port strike occur early in 2025, there will be strong repercussions that will impact global supply chains across all modes of transportation.

UPDATE: November 17th

Port Strikes: Extension of Master Contract until January 15, 2025 

With just under two months to go, the ILA and USMX are in a period of negotiation to update the Master Contract for union members. Negotiations last week broke down as reported by several outlets with the ILA representatives expressing concern over automation.

The ILA union represents 45,000 East and Gulf Coast dockworkers.

UPDATE: October 4th, 2024

End of Port Strike on the East Coast - extension of Master Contract

A joint statement has been issued by USMX and the ILA as below: 

NORTH BERGEN/LYNDHURST, NJ (October 3, 2024) – The International Longshoremen’s Association (ILA) and the United States Maritime Alliance, Ltd. (USMX) have reached a tentative agreement on wages and have agreed to extend the Master Contract until January 15, 2025, to return to the bargaining table to negotiate all other outstanding issues. Effective immediately, all current job actions will cease, and all work covered by the Master Contract will resume. 

Some ports resumed operations upon receipt of the announcement. In Savannah, for example, our team advised that 14 vessels were at anchor and they plan to berth 7 at a time. Immediate drayage, transload and long term storage is available at our nearby warehouse facility in Savannah. 

If you require immediate assistance at this time, please don't hesitate to reach out to your Crane Worldwide Logistics representative or get in touch online.

October 2nd, 2024 update

The White House issues statement on the East Coast Port Strike

The ILA commenced strike action on October 1st, 2024. Major terminals on the East and Gulf Coast have since stopped operations. Yesterday, a statement was released from the White House with regards to the current situation. 

What you need to know as a shipper:

• It is not known at this time how long the strike will continue to take place. The ILA and USMX are yet to come to an agreement. 
• Crane Worldwide has received notification from some carriers that they will be declaring Force Majeure due to the current situation.

Please don't hesitate to reach out to a member of the Crane Worldwide team, or reach out online, for assistance at this time. 

Please see the list of our global locations should you require support, our air freight and warehousing solutions throughout the United States may support your business at this time. 

30th September, 2024

East Coast Port Update Today – ILA Potential Strike

Further to our alert published below on the 17th September 2024, a potential strike at the East Coast ports is imminent with under 24 hours before the deadline to meet an agreement on the Master Contract between USMX and the ILA.

What you need to know about the potential East Coast port Strike:

1. Strike will take place at 12.01am on Tuesday of this week.
2. The length of the strike is yet unknown, but, for each day it is expected up to a week to recoup the backlog of containers at ports.
3. The latest information indicates that the Biden administration will not intervene with the Taft-Hartley Act. 
4. Ports began their shut down guidance plans last week, some examples below:

• Port of Houston
• Port of New Jersey and New York
• Port of Boston
• Georgia Ports

   5. Montreal Port, Canada: On September 27th, the Maritime Employers Association (MEA) received notice from the Longshoremen's Union of the Port of Montreal - CUPE Local 375 of a three-day strike at the Viau and Maisonneuve container terminals, effective from 7 a.m. on Monday, September 30 to 6:59 a.m. on Thursday, October 3. click here for more information on the latest update

If you have urgent requirements to support your business, reach out to your local Crane Worldwide Logistics advisor or contact us here.

Guidance Advisory on 17th September, 2024

Potential East Coast Port Strike 

Below is some information regarding the potential for a strike at East and Gulf Coast ports.

What is happening at the East and Gulf Coast Ports?

The largest union of maritime workers in North America, The International Longshoremen’s Association (ILA) represents over 85,000 people. The union master contract that represents the US East and Gulf coast ports is scheduled to expire on September 30, 2024. The latest statement from the ILA posted on September 17th, indicates that if a new contract with USMX is not on the bargaining table nor agreed to, port strike action will take place.

The longshore workers are responsible for many operational aspects of key ports up and down the East Coast of the United States from Maine to Texas. Longshoremen play an instrumental part of port operations, handling freight including the loading and unloading of cargo arriving by sea. 

When would a potential strike on the East and Gulf Coast start?

As stated on the ILA website on September 5th: "Nearly 300 International Longshoremen’s Association Wage Scale Delegates ended their two-day Wage Scale Meetings today in New Jersey by unanimously supporting International President Harold J. Daggett’s call for a coastwide strike at ports from Maine to Texas on October 1, 2024, if a new agreement with United States Maritime Alliance is not reached at that time."

Daggett added “the ILA is not seeking intervention from outside agencies” given speculations that the Biden administration may invoke the Taft-Hartley Act which would impose an 80-day “cooling-off” period if it is determined that the strike threatens national health and safety. The Delegates remain firm on key demands, including wage increases of 78% and stricter protections against automation at marine terminals.

What would be the impact on logistics operations?

No question exists that strike action on the East Coast would heavily impact global supply chain operations and imports into the United States. The transatlantic ocean freight from key Dutch, German and Belgian ports as well as the Transpacific eastbound trades ex Asia to the US would be the first in line to feel the impact from any potential strike and there would be ripple effects across global supply chains.

43% of the total import container volume into the US runs through the ILA controlled ports. Congestion at the ports would be considerable yet dependent on how long strike action takes place.  A week of strike action sums up to 5-6 weeks clean up once the strike has ended.

Although traditionally the East Coast ports are not heavily impacted by seasonality like on the West Coast, major imports include machinery and vehicles that for various reasons cannot be transported other than by ocean freight. 

What are shippers options if strike action prevails?

For ocean freight services, if East Coast ports are out of action, we expect to see a surge in freight towards Los Angeles and the West Coast. However, freight coming from Europe will involve passing through the Panama Canal and increased traffic will be inevitable.

As the West Coast ports are already congested in getting the landed containers out by rail, you should consider additional lead times if this option is viable for your freight. Crane Worldwide has offices and warehouse space available throughout the West Coast should additional capacity be required. 

The Canadian ports will struggle to handle such volumes as alternative ports of entry as the capacity simply isn’t available. The potential risk of Canadian rail disruption should also be an element of consideration. 

Air freight from Europe to the United States could be a potential option and Crane Worldwide has secured space availability from London Heathrow and Frankfurt as well as other major European hubs. If the strike does come to fruition, we would expect heavy demand on airports such as Boston, New York, Charlotte, Washington and Miami. If this is the case, alternative airport hubs such as Atlanta, Chicago and Houston could be utilized with our own domestic trucking service to support road freight movements.

Should air freight become a necessity, we would obviously advise that urgent and critical shipments are prioritized on customer commitments, urgency, and value. Where possible, a shipper should consolidate smaller shipments into larger consignments to optimize space and reduce costs as well as assessing the volume of cargo needing air freight and determining the required capacity to meet demand. 

In case of urgent requirements, Crane Worldwide also offer air charter services. 

What else do I need to know?

If strike action does take place and subsequently a resolution is put in place, there will be heavy congestion at the East Coast ports for a considerable amount of time. This is dependent upon how long the strike would impact operations. There are a number of scenarios that could take place should strike action proceed, should this situation escalate or you have concerns with regards to your current shipment planning, please don't hesitate to reach out to a member of the Crane Worldwide team to discuss possibilities. 

If you have any concerns relating to the potential strike action, please don't hesitate to contact your local Crane Worldwide representative or reach out to us online