The OCEANAIR Current

General

With the looming potential for an East Coast port strike on January 15, OCEANAIR has dedicated this week’s Current to strike updates.

Although the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) reached a tentative agreement in October 2024, key issues remain unresolved—most notably, the implementation of automation at port terminals. The ILA, representing approximately 45,000 dockworkers across major East and Gulf Coast ports, has strongly opposed automation due to concerns over job security and long-term employment stability. With these disagreements still at the forefront, the potential for a strike starting January 15 looms large.

Industry experts estimate that a strike could cost the U.S. economy $5–10 billion per day. In response, major carriers like Maersk are urging customers to retrieve containers by January 15 to avoid disruptions, while ocean carriers have announced disruption surcharges, with most falling in the $1,500–$1,700 range per FEU.

Negotiations between the ILA and USMX are set to resume on January 7, 2025. OCEANAIR is hopeful that a solution or an additional extension will be in place before the 15th to avoid another disruption. Nevertheless, OCEANAIR is proactively clearing and recovering East Coast import containers and assessing affected export bookings. Updates will continue to be announced as the situation develops.