Strike cripples US East Coast ports

Workers affiliated to the International Longshoremen's Union (ILU) walked off their jobs at midnight on October 1 across the U.S. East Coast ports as talks failed between the union and the United States Maritime Alliance (USMX).

USMX, in its efforts to avoid the strike, made a last ditch attempt by offering a 50 percent increase in wages over six years - an offer rejected by ILU, CNBC reported.

"Based on data from ImportGenius, which tracks the bills of lading — the digital receipts of cargo containers — a total of 54,456 TEUs arrived on Friday at the 14 ports operating under the master contract between ILA and USMX. The approximate value of that freight was upward of $2.7 billion, based on an MDS Transmodal estimate of $50,000 per container. For the weekdays between September 23-27, a total of 273,417 TEUs were imputed through customs at these ports with a value of approximately $13.67 billion."

The 14 ports affected include Boston, New York/New Jersey, Philadelphia, Wilmington, North Carolina, Baltimore, Norfolk, Charleston, Savannah, Jacksonville, Tampa, Miami, New Orleans, Mobile, and Houston, the report added.

In a video posted to an Instagram account, Harold J. Daggett, President, ILA addressed union workers at Maher Terminals in Elizabeth, New Jersey. "This is going down in history what we're doing here. They can't survive too long."

A one-week strike could cost the U.S. economy $3.78 billion, according to an analysis by The Conference Board, and cause supply chain slowdowns through mid-November, CNBC reported. "In all, the ports threatened with strikes handle $3 trillion annually in U.S. annual international trade."

ILA, in a statement before walking off, said: "The ocean carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024 while they offer ILA Longshore workers an unacceptable wage package that we reject. ILA longshore workers deserve to be compensated for the important work they do keeping American commerce moving and growing. It’s disgraceful that most of these foreign-owned shipping companies are engaged in a Make and Take operation: They want to make their billion-dollar profits at United States ports, and off the backs of American ILA longshore workers, and take those earnings out of this country and into the pockets of foreign conglomerates. Meanwhile, ILA dedicated longshore workers continue to be crippled by inflation due to USMX’s unfair wage packages.

“In addition, the shippers are gouging their customers that result in increased costs to American consumers. They are now charging $30,000 for a full container, a whopping increase from $6,000 per container just a few weeks ago. In just a short time, they went from 6K, to 18K, then 24K and now $30,000. It’s unheard of and they are doubling their $30,000 fee stuffing the same container from multiple shippers. They are killing the customers.”

USMX, meanwhile claimed: "In the last 24 hours, the USMX and ILA have traded counter offers related to wages. The USMX increased our offer and has also requested an extension of the current Master Contract, now that both sides have moved off their previous positions. We are hopeful that this could allow us to fully resume collective bargaining around the other outstanding issues – in an effort to reach an agreement.

"Our offer would increase wages by nearly 50 percent, triple employer contributions to employee retirement plans, strengthen our health care options, and retain the current language around automation and semi-automation.”