“USMX’s goal continues to be focused on ratifying a new Master Contract that addresses all the critical issues the parties need to bargain. Reaching an agreement will require negotiating – and our full focus is on how to return to the table to further discuss these vital components, many of which are intertwined. We cannot agree to preconditions to return to bargaining – but we remain committed to bargaining in good faith to address the ILA’s demands and USMX’s concerns.”
United States Maritime Association (USMX) | Press Release | October 2, 2024
ILA STRIKE DECLARED FORCE MAJEURE EVENT
As Day 3 of the International Longshoreman Association (ILA) Dockworker strike unfolds, carriers have begun declaring the event a force majeure event. This move by carriers brings an ominous shadow to the labor stoppage, suggesting that carriers do not anticipate a swift end to the strike.
Force majeure refers to unforeseen events that prevent parties from fulfilling contractual obligations. In the context of ocean container vessel carriers, it typically includes natural disasters, wars, strikes, or pandemics that disrupt shipping operations.
When ocean carriers declare an event as force majeure, it means they are invoking a legal clause that excuses them from liability for non-performance or delays in service. This declaration often leads to the suspension of contractual obligations, such as delivery timelines, without penalties for the carrier. It is crucial for both shippers and carriers to understand the specific terms outlined in their contracts regarding force majeure to navigate potential disruptions effectively.
As of the publishing of this article, the following carriers have declared the ILA strike a force majeure event:
ILA-USMX CONTRACT NEGOTIATIONS STATUS
Contract renewal negotiations between the ILA and the United States Maritime Association (USMX) remain at a stalemate while 50% of the U.S. supply chain remains at a standstill. Port contingency plans ensure the movement of critical food and medical supplies. However, thousands of vessels remain idling off the U.S. East and Gulf coasts.
“Our members feel underappreciated (sic), especially given the sacrifices they made during the pandemic, keeping ports open and the economy moving. The wage increases in the previous contract were rendered meaningless by rising inflation. Meanwhile, foreign-owned ocean carriers continue to make record profits, imposing outrageous surcharges on consumers and customers, yet they balk at the idea of sharing these profits fairly with the ILA.”
International Longshoreman Association (ILA) | Press Release | October 1, 2024
PREVIOUS ILA STRIKE UPDATES
Follow Green Worldwide Shipping’s coverage of the ILA-USMX contract negotiations updates here:
Day One: ILA U.S. East Coast Strike Coverage
Day Two: ILA-USMX Negotiation Stalemate
Potential Impact Of ILA Strike On U.S. East Coast and Gulf Ports, Carrier Surcharges
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