ILA Talks at a Standstill as Negotiation Deadline Approaches 

As the December 29th deadline for the negotiations between the International Longshoremen's Association and United States Maritime Alliance quickly approaches, no resolution is currently in sight. Negotiations between the two parties broke off amid disagreements over carrier-paid container royalties paid to ILA workers annually. ILA President Harold Daggett said "I think we'll be on strike," which raises the likelihood of a Maine-to-Texas dock strike at one minute past midnight on the 29th.

The current contract is set to expire December 29th.  ILA wage-scale delegates voted last week to authorize ILA President Harold Daggett to call a strike if there was no agreement by that date. The strike would affect container and roll-on, roll-off cargo at ports from Maine-to-Texas.

Major steamship lines have announced that in the event of a strike, lockout, slowdown or congestion at U.S. ports there is a potential congestion fee increase effective January 1, 2013. The additional charge could range from $1000-$1200 and customers are liable for any additional charges enforced by Force Majeur.

The impending strike has forced shippers to accelerate strike contingency plans. All exports which need to be shipped must be on the water by Dec 28.  Short of making this date, other limited options include: movement to the West Coast plus a $1000 premium (if there is space on the vessel), diverting cargo to the West Coast, Canada, Mexico or shipping cargo via airfreight.

At this time, the parties are proposing to return Jan. 7 after the holidays to begin two weeks of intensive negotiations if an agreement cannot be reached by the December 29th deadline.

We will continuing to monitor the situation and provide the latest information as we receive it. Please contact your move manager if you have any questions.