Current situation of ports affected by strike in the USA

The strike was triggered by a lack of agreement between the International Longshoremen’s Association (ILA) and the US Maritime Alliance (USMX).

The dispute centred on two key points: on the one hand, the union is demanding a salary increase of up to 77% during the term of the contract; on the other, it is concerned about the use of automation in ports, arguing that it will lead to job losses.

The USMX, for its part, has proposed a salary increase of more than 50% in a six-year contract.

The strike ended after a provisional agreement was reached extending the contract until January 2025.

This extension gives both sides some time to negotiate outstanding issues, but if a contract is not renewed by then, the union could go on strike again.

Shippers are still dealing with the lingering impacts of some of the terminal closures that took place during the work stoppage.

What is happening now after the strike?

The US port strike is over, but the repercussions are far from over.

A week of disruption often leads to months of delays at ports, and these delays increase as you move further inland.

As seen in the past, when port congestion and dwell time increases, equipment remains immobilized for longer and rates tend to increase as equipment availability decreases.

Additionally, the southeastern U.S. is also recovering from Hurricane Helene. 

Some of the ports most affected by the strike were:

  • New York/New Jersey : The largest port on the East Coast, which is critical for the transportation of heavy machinery and retail products.
  • Baltimore and Brunswick, Georgia : The nation’s major automobile import ports.
  • Filadelfia : Port that imports mainly fruits and vegetables, mainly from Latin America.
  • New Orleans : Important port for the entry of agricultural products such as cocoa and coffee from South America, as well as chemicals and wood.