On October 11, 2024, SupplyChainDive quoted Ashley Craig on the International Longshoremen’s Association (ILA) strike and the impact it will have on shippers.
According to the article, a three-day ILA strike disrupted the East and Gulf Coast port operations earlier this month. The ILA and United Maritime Alliance reached a tentative wage deal and agreed to extend their master contract until January 15, 2025. The extension gives both parties time to smooth out lingering issues. But if a contract is not renewed in January, the union could go on strike again.
Craig commented on the issues shippers could face and what they should focus on to better manage their freight and supply chains moving forward. The following is an excerpt:
While the strike was relatively short, with the complexities of global supply chains, the impact is and will continue to be felt throughout many sectors. This is due to carriers diverting cargo in anticipation of the strike, the complete closure of all terminals on the Atlantic and Gulf coasts for multiple days – translating into holds, detentions, stoppages, etc.
Additionally, questions remain as to the new surcharges, diversion costs and operational concerns triggered by the anticipated strike and the reality of three days downtime. Shippers, NVOCC’s forwarders and others should understand what protections and liabilities arise from your contracts if the labor unrest disrupted business operations or ability to perform.
Shippers should know what avenues for disputing charges are available and regulated entities should ensure they understand their regulatory obligations and are operating in strict compliance.
You can click here to access the article.