JOC Reports ILA Work Stoppage Growing Possibility

The JOC has reported that an ILA work stoppage on the East Coast is a growing possibility as the union and the USMX remain far apart on an agreement to replace the 90 day extension that ends on December 29. It seems both parties are unwilling to compromise on what they each say are unreasonable demands from the other side.

The JOC notes that supply chain managers are once again faced with difficult decisions. Do they divert containers in the run-up to the Chinese New Year (February 10)? And in the face of the current West Coast ILWU strike, they must wonder whether there will be any ports left open.

The current back and forth between the union and the USMX echoes the same exchanges they had during the summer. The union will meet with its delegates in Florida from December 10-12 and the USMX will be on hand to resume negotiations which the federal mediator will continue to oversee. Even if progress is made at this meeting, however, it leaves little time for resolution of all of the local contracts and issues prior to the December 29 expiration date.

The JOC reports that a December 31 expiration of the ILA's contract with the chassis and container repair companies in New York and New Jersey will further complicate the situation.

Liberty will continue to provide you with updates as more information becomes available.