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East and Gulf Coast Port Strike Page

Last updated October 4, 2024 at 9:06 am ET
 

Temporary Agreement Made Between ILA and USMX

A joint statement was published announcing an agreement between the ILA and USMX to return to work until January 15 with the ILA members returning Friday, October 4, 2024.

On October 3, Nick Breslin, Senior Manager of Regulatory Affairs at ACD, wrote Force Majeure or Force of Greed? The Port Strike and Its Cost to Americans. 

Also on October 3, ACD sent the White House a letter expressing our concerns about the strike, including the issue of carriers assessing excessive charges. Read more here: ACD Criticizes Excessive Surcharges Imposed by Ocean Carriers in Letter to Biden Administration. 

ACD will continue work through January 15, to ensure that carriers exhibit fair and just operations regarding their shipping rates and practices, and that ACD members have stability in their shipping of the critical ingredients needed for American's everyday lives.

 

General Updates

  • The port labor strike began, effective at 12:01 am October 1, impacting ports up and down the East and Gulf Coasts.
    • The United States Maritime Alliance published a press release shortly before the strike, indicating that it had traded offers with the International Longshoremen’s Association with increased pay and a request to prolong the current agreement to prevent a strike. This was rejected.
    • The International Longshoremen’s Association has continued to post updates to its Facebook page. In an October 1 update the union said the United States Maritime Alliance “must meet [their] demands for this strike to end,” saying they are “prepared to fight as long as necessary.”
  • On October 3, ACD sent a letter to President Biden, Secretary Buttigieg, and Secretary Su. In the letter, ACD expressed its frustration at the two negotiating parties and the ocean carriers that are charging high surcharges. ACD expressed the need for the White House to step in immediately considering the critical nature of many chemicals that are unable to enter the United States because of the strike. ACD also published a press release on the letter.
  • The morning of October 2, ACD joined over 250 other associations in a letter to President Biden. In the letter, the groups urged President Biden to step in to open the ports and get each side to reach an agreement.
  • ACD participated in a supply chain roundtable held by the International Trade Administration on October 1. In this roundtable, two ACD member companies discussed the impact the strike will have on their operations and availability of critical chemicals.
  • ACD published a press release shortly after the strike. In this release ACD President and CEO Eric Byer highlighted the economic impact of the strike and urged the Biden Administration to get involved to end the work stoppage immediately.
  • On October 2, the United States Maritime Alliance published a statement where it stated it is committed to bargaining with the International Longshoremen’s Association. Notably, in the letter the United States Maritime Alliance said it would not agree to preconditions to return to bargaining. The International Longshoremen’s Association published an unrelated statement where it expressed grave concern over death threats made to its President and frustration with a New York Post article that revealed the address of his residence.
  • Late October 1, the United States Maritime Alliance published a statement where they indicated their current offer to the International Longshoremen’s Union is a wage increase of nearly 50% and that this offer “exceeds every other recent union settlement.” The union quickly published their own statement in response, calling the earlier press release misleading given the low entry-level wage and need for a large portion of the workforce to be constantly on call. The union reaffirmed its demand for a $5 an hour yearly increase wages and prohibitions against automation, among other things, saying “this is what it will take to bring the [union] back to the table to continue talks.”
  • Shortly before the strike, ACD President and CEO Eric Byer spoke with a Federal Maritime Commission official. In this call he emphasized the extreme impact the strike will have on chemical imports. Mr. Byer also explained how the coinciding Hurricane Helene disaster has made it difficult for ACD members to deliver critical chemicals for necessary functions, such as water treatment, to impacted localities. This information was relayed by to senior officials in the White House.
  • In addition to the East and Gulf Coast strikes, there is an additional strike of port workers in Montreal, Canada. This began on September 30 and is expected to last until October 3.

 

White House Updates

  • President Biden published a statement on the negotiations on October 1. In the statement President Biden urged the United States Maritime Alliance to present a fair offer to the International Longshoremen’s Association, referencing the record profits ocean carriers have made in recent years. Biden also says his Administration “will be monitoring for any price gouging activity that benefits foreign ocean carriers, including those on the USMX board.”
  • Ahead of the labor contract deadline, ACD joined two letters —one on June 25 and the other on September 23—to the Biden Administration, both endorsed by over 150 shipping organizations, to urge the White House to pressure both sides to come to an agreement.

 

U.S. Customs & Border Protection Updates

 

Federal Maritime Commission Updates

  • On October 1, the Federal Maritime Commission published a notice where it outlines several services available during the current supply chain challenges. These resources include various resources available to shippers who seek to resolve business disputes, erroneous charges, and other practices that do not comply with the Commissions regulations.
  • On September 23, the Federal Maritime Commission published an industry advisory reaffirming the Commission’s regulatory requirements regarding charges. The Commission reminded regulated entities that “regulations require that demurrage and detention fees serve as legitimate financial incentives to encourage cargo movement. Pursuant to these requirements, the Commission will scrutinize any demurrage and detention charges assessed during terminal closures.”
    • Following this advisory several ports and terminals have announced that free time will be paused during a work stoppage.
  • ACD sent a letter to the Federal Maritime Commission expressing concern over the additional charges shippers are likely to face from terminals and ocean carriers in the event of a labor strike. ACD published a press release announcing this letter.

 

Environmental Protection Agency Updates

 

U.S. Department of Transportation Updates

  • On October 1, Transportation Secretary Pete Buttigieg published a statement where he called on ocean carriers to withdraw surcharges. In the statement, he accused carriers of exploiting a disruption for profit and reaffirmed the Federal Maritime Commission’s authority to ensure all fees are legitimate and lawful.
  • Statement on East and Gulf Coast Ports.

 

U.S. Department of Labor Updates

  • On October 1, Secretary of Labor Julie Su published a statement on the negotiations between the United States Maritime Alliance and International Longshoremen’s Association. In the statement Secretary Su urged both sides to return to the negotiating table, saying the giant shipping magnates must acknowledge “that if they can make record profits, their workers should share in that economic success.”

 

Congressional Updates

  • On October 2, Michelle Steel (R-CA) introduced the “Safeguarding the Supply Chain Act.” This bill would require mediation efforts to be exhausted before port workers could begin a labor strike.
  • On October 1, Congressmen Graves (R-MO) and Webster (R-FL), who are Chairs of the Committee on Transportation and Infrastructure and Subcommittee on Coast Guard and Maritime Transportation, respectively, sent a letter to President Biden. In the letter, the Members of Congress urged President Biden to immediately intervene in the strike, referencing his powers under the Taft-Hartley Act. This act permits President Biden to require the dockworkers to return to work for 80 days.
  • On October 1, House Speaker Johnson (R-LA) posted on X, previously Twitter, calling on the Biden Administration to resolve the strike.
  • On September 27, Senator Moran (R-IN) sent a letter to President Biden. In the letter he highlighted the impact a strike would have on Kansas and urged the Administration to get both sides to agree to a long-term solution to prevent a strike.
  • On September 23, Senator Cassidy (R-LA) sent a letter to President Biden and Vice President Harris emphasizing the negative impacts of a strike and urging the Administration to take actions to prevent one. In the letter Senator Cassidy accused the Administration of pro-union favoritism and referenced the authority to end the strike under the Taft-Hartley Act.
  • On September 19, 69 Members of Congress sent a letter to the Biden Administration raising concern with the state of negotiations and urging the Administration to provide any support necessary to get both sides to facilitate negotiations. The letter also urged the Administration to urge every authority at its disposal if a strike were to occur.

 

Surcharges

 

Media Inquires

The resources on this webpage are intended for member education. If you’re interested in using this information for media coverage or want to learn more about the impact of the port strikes on the chemical distribution industry, please reach out to ACD Public Affairs Manager, Susannah Williams, at swilliams@acd-chem.com.