ILA-USMX negotiations on the US East Coast

4 October 2024

The International Longshoremen’s Association (ILA) and the United States Maritime Alliance, Ltd. 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, particularly automation.

All ports will reopen, and work will resume on Friday, 4 October.

Camilo Palacios
Director Ocean Product North America
Toll Global Forwarding

2 October 2024

The International Longshoremen's Association (ILA) began strikes at the ports on the US East Coast (USEC) and Gulf Coast on 1 October 2024, at 0001h Eastern Daylight Time (EDT), as an agreement with US Maritime Alliance (USMX) was not reached.

As a result, all operations at these ports have come to a halt. This means no containers can be picked up or delivered, and vessels cannot berth. Fortunately, we have not received any reports of ships being "trapped" at the ports.

Several carriers have declared force majeure, which allows them to reroute as necessary. Many vessels have already skipped their scheduled East Coast port calls to avoid the strike, offloading at other ports instead. Vessels set to arrive at the USEC will likely anchor offshore and await the strike's resolution, resulting in backlog and congestion.

In anticipation of a significant disruption, some shipping lines announced the implementation of disruption and congestion surcharges scheduled to come into effect from 1 October 2024. As these are third-party charges beyond Toll’s control, we will need to recover the cost by passing it through to our customers as charged.

At this time, the duration of the strike is unknown. Given that the affected ports handle approximately 40% of all US ocean freight volumes, we anticipate significant delays to continue post-strike as the resultant backlog and congestion are cleared.

To support your supply chain during this time, we have prepared several solutions, including alternative routings, different ports of discharge, and various modes of transport, such as sea-air and overland options. These measures are designed to mitigate the strike's impact on your operations.

We are closely monitoring the situation and will provide updates as necessary. Please reach out to your local Toll Global Forwarding representative or office to discuss options for your business.

¹The ILA covers 14 ports on the US East Coast: Baltimore, Boston, Charleston, Hampton Roads (Norfolk/Portsmouth), Houston, Jacksonville, Miami, Mobile, New Orleans, New York/Newark, Philadelphia, Savannah, Tampa, and Wilmington.


Camilo Palacios
Director Ocean Product North America
Toll Global Forwarding

24 September 2024

A strike on the US East Coast seems increasingly likely as negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance, Ltd. (USMX) have not progressed.

The US government recently turned down a request from trade associations to intervene and urged the ILA and USMX to continue with the negotiations.

The ILA covers 14 ports on the US East Coast: Baltimore, Boston, Charleston, Hampton Roads (Norfolk/Portsmouth), Houston, Jacksonville, Miami, Mobile, New Orleans, New York/Newark, Philadelphia, Savannah, Tampa, and Wilmington, and moves about 40% of all US ocean freight volumes.

In anticipation of a significant disruption, some shipping lines have announced the implementation of disruption and congestion surcharges scheduled to come into effect from 1 October 2024. As these are third-party charges beyond Toll’s control, we will need to recover the cost by passing it through to our customers as charged.

To support our customers’ supply chains, our team has prepared solutions to address challenges from different origins. These involve alternative routings, ports of discharge, and modes such as sea-air and overland to mitigate the impact of this action should it occur.

Please get in touch with your local Toll Global Forwarding representative or office to discuss and implement contingency plans to minimise disruption to your supply chain.

Camilo Palacios
Director Ocean Product North America
Toll Global Forwarding

4 September 2024

The agreement between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance, Ltd. (USMX) expires on 30 September 2024 (EDT).

The ILA is the union covering major container terminals on the US East Coast (USEC). 

Negotiations have been on hold since June; the union will go on strike from 1 October 2024 if an agreement is not reached.

The ILA has scheduled meetings for 4-5 September, where its leadership plans to review its demands and establish strike committees to prepare for a possible strike. The USMX Board of Directors will convene on the same dates to discuss the next course of action. 

A strike on the USEC would have a massive impact on the US economy and container shipping flows. It would lead to port closures, the inability of vessels to berth and unload or load cargo, and halt cargo pick-up. USEC ports handle roughly 40% of all US ocean freight volumes, and clearing a single day’s backlog would take days. 

We will update you as more information becomes available.

Please contact your local Toll Global Forwarding representative or office for more information.

Camilo Palacios
Director Ocean Product North America
Toll Global Forwarding

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