Carriers plan new strike at US East Coast ports as contract deadline approaches

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By Charlotte Goldstone 02/01/2025

Negotiations between the International Longshore Association (ILA) and port employers, the United States Maritime Alliance (USMX), now have a very short window to produce a new framework contract before another strike, forcing checkout lines to mitigate the impact.

The current master contract between workers and employers at the eastern United States and Gulf Coast ports will expire on January 15 and, if no new agreement is reached by then, a strike on all the coast is expected on January 16.

Negotiations have made no progress since September, when the sides agreed to a 62% wage increase. Automation remains the major impasse between longshoremen and their employers.

The USMX says increased automation is key to productivity, while the ILA says it will reduce the availability of human jobs.

US media reports that negotiations are expected to continue on January 7, leaving only eight days for the USMX and ILA to agree on a new framework contract.

Meanwhile, Maersk urged its customers: “We strongly encourage our customers to collect their loaded containers and return empty containers to ports in the Eastern United States and Gulf Coast by January 15. This proactive measure will help mitigate any potential disruption at terminals.

The Danish carrier said it was actively developing contingency plans to minimize the impact in the event of a work disruption.

The framework contract will expire just five days before Donald Trump's inauguration as the 47th US president, which could be an important factor in the negotiations. Peter Tirschwell, global vice chairman of S&P, told TheFreight Buyers Club podcast that Mr. Trump would side with the union 100%.

He added: They then continue the strike. They have been on strike for five days. Trump comes to power as the knight in shining armor who tells the shipping carriers that there will be hell to pay unless you agree to what the union is demanding, and he saves the day.

In the event of a strike, German carrier Hapag-Lloyd has announced it will introduce work interruption and work interruption destination surcharges from January 20, to help manage the potential impact of current challenges in U.S. East Coast and Gulf ports.

The surcharges would cover “additional costs related to work interruptions, strikes, slowdowns, unrest, traffic jams and other unforeseen events that could delay operations and result in additional handling, storage and service costs.” “food,” he explained.

The two surcharges will add $850 per teu for imports to East Coast and Gulf ports, but will not apply to containers already on the water or registered before January 20, and will only affect goods entering from January 20.

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