USMX / ILA Port Disruption Advisory

Please bookmark this webpage, where we will publish important updates as the situation evolves.

4 October 2024 – Update #3

“The International Longshoremen’s Association 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,” The International Longshoremen’s Association and the United States Maritime Alliance said in a joint statement.

A final agreement would still have to be ratified by union members.

Please contact your OIA representative for further updates and assistance.

1 October 2024 – Update #2

As of 1 October 2024, the International Longshoremen’s Association (ILA) has initiated a strike. Dozens of major terminals on the U.S. East and Gulf Coasts will remain closed for the duration of the work stoppage. No goods will be picked up or delivered, leading to significant disruptions in trade. 

Key Impacts

• Halted Operations: All shipments have ceased, causing major supply chain delays.
• Severe Congestion: Vessels cannot dock, further delaying recovery once operations resume.
• Supply Chain Disruptions: This affects both imports and exports, leading to extended delays and increased costs.
• Indefinite Shipping Schedules: Due to the closure, delivery dates are currently to be determined.
• Extended Recovery Time: For each day of the strike, an estimated week is required for ports to recover.
• Force Majeure: Some carriers have already invoked Force Majeure, which releases them from liability due to extraordinary circumstances.

In commercial/international law, force majeure signifies an extraordinary and unforeseen event whose occurrence frees the agreed upon parties from certain obligations to one another. Force majeure incidents typically include wars, natural disasters, terrorist attacks, pandemics, or civil unrest like riots.  

OIA Global’s Response

• Alternative Routes: We are evaluating and utilizing West Coast and unaffected ports.
• Customized Solutions: Tailored plans, including mode shifts and route optimization, are available to minimize disruptions.

What You Can Do

• Review Shipping Schedules: Adjustments may be needed to account for delays.
• Stay Connected: Contact your OIA account representative for guidance and contingency plans.
  

We are committed to supporting your business during this challenging time and will continue to provide updates as the situation unfolds. For any questions or assistance, please contact your OIA Global representative.

24 September 2024 – Update #1

OIA Global is closely monitoring the United States Maritime Alliance (USMX) and International Longshoremen’s Association (ILA) port disruption situation as part of the company’s ongoing commitment to keep our customers informed.

Negotiations are currently halted, and the current contract is set to expire on September 30th, so there is a heightened risk of labor disruptions at U.S. East and Gulf Coast ports.

What You Need to Know

Current Situation

USMX and ILA negotiations over new labor contracts for dockworkers on the East and Gulf Coasts have stalled. With conversations halted, the potential for significant disruption at key ports looms as the contract expiration date approaches.

Potential Impacts

A strike or work stoppage could cause considerable delays at East and Gulf Coast ports, affecting cargo movement, delivery schedules, and overall supply chain reliability. This situation may also lead to increased congestion and costs as shippers seek alternative routes. Additionally, increased costs from carriers and co-loaders are announced and will be implemented in the event of a strike.

OIA’s Proactive Measures

• Diversion Strategies: We are evaluating alternative port options on the West Coast and other unaffected regions to minimize disruptions.
• Custom Solutions: We are prepared to offer customized contingency plans tailored to your specific needs, including mode shifts, route optimization, and inventory management adjustments, etc.

What You Can Do

• Plan Ahead: Consider adjusting your shipping schedules and routing to avoid potential delays.
• Connect with Us: Reach out to your OIA account representative for advice and assistance with your supply chain planning.