There is growing unease about the future of eastern and Gulf Coast ports.
The labor contract between the International Longshoremen's Association and the Maritime Union of the United States (USMX) will expire at the end of September. ILA represents about 70,000 dockworkers, while USMX represents employers in 36 coastal ports, including three of the five busiest ports in the United States: the ports of New York and New Jersey, the ports of Savannah, Georgia, and Houston.
Contract negotiations between ILA and USMX began in February 2023 but soon broke down over salary** issues. Developments since then have not been encouraging.
In November, ILA leadership warned about 45,000 members to "prepare for a possible coast-wide strike in October 2024" after the expiration of their current main contracts. ILA President Harold Daggett also warned that the current contract is unlikely to be extended after the expiration date.
In other words, the ILA dockers were well prepared to replace the pallet trucks with picket plates by October 1.
Not surprisingly, these threats have upset industry associations such as the National Retail Federation, which have actively expressed a desire to facilitate negotiations between the two sides. NRF President and CEO Matthew Shay expressed concern in a January letter that "discussions have been on hold for months, and discussions about potential disruptions have increased."