ILA Contract Talks Break Down

Negotiations with the International Longshoremen's Association (ILA) and a group representing employers at East and Gulf Coast ports broke off Wednesday, raising the prospect of the first strike to affect ports from Maine to Texas since 1977.  The breakdown in contract talks is certain to cause shippers to step up contingency plans that many already have implemented as the current contract's Sept. 30 expiration draws near.

Committees representing the ILA and United States Maritime Alliance met Wednesday morning in anticipation of three days of talks in Delray Beach, Fla., but negotiations broke off after a 20-minute session.

ILA President Harold Daggett broke off talks after USMX presented a "take-it-or-leave-it" proposal and said management would not discuss continuing negotiations unless the ILA agreed not to require employers to "pay for inefficiencies." According to a USMX statement,  one out of every three ILA members working at the port makes more than $208,000 a year in wages and benefits.

Concerns about a strike or lockout that could paralyze cargo traffic moving in and out of 13 U.S. ports are rising. Importers are discussing shifting cargo deliveries from East to West Coast ports to avoid any service disruptions. About 20 percent of all apparel, textile, and footwear traffic moves through the 13 ports stretching from Maine to Texas, according to the trade group the National Retail Federation (NRF).

We will be monitoring the situation and request that if you have any questions or concerns about a shipment you have or one in progress, please be sure to contact your move manager.