The United States Maritime Alliance, which represents port terminal operators and ocean carriers on the East Coast, and the International Longshoremen’s Association have a six-year contract that ends on September 31. The union has set a deadline of May 17 for the local contracts to be finalized, following which the largest union of port workers in North America can negotiate an overall master contract. In contrast to their West Coast counterparts, ILA labor unions have a lower striking history. However, logistics managers are shifting more freight away from the East Coast, and trade is currently being redirected due to Red Sea diversions and Panama Canal drought limitations.

Amidst a plethora of trade uncertainties this year, logistics decision-makers and consultants are starting to become more concerned about the possibility of a strike by the International Longshoremen’s Association, the largest union of maritime workers in North America.
The upcoming deadlines for the East Coast and Gulf Coast port labor talks have more shippers on edge, while Red Sea diversions and Panama Canal drought limitations are already having an impact on negotiations over ocean freight rates.

In contrast to 2022 and 2023, when East Coast ports saw significant increases in cargo volume as a result of both the severe vessel congestion and labor unrest at ports all over the West Coast, cargo containers that were originally destined for the East Coast are now starting to return to the West Coast in an effort to minimize any service interruptions.
This week, U.S. importers and ocean carriers are meeting to begin contract discussions. U.S. importers and ocean carriers sign one-year contracts in March and April to secure the best ocean freight rate.

The union has set a deadline of May 17 for the local contracts to be agreed upon, after which an overall master contract can be discussed. The ILA’s master contract with the United States Maritime Alliance, which represents terminal operators and ocean carriers, is scheduled to expire on September 31. The six-year contract negotiations formally started last month.
The ILA transports all cargo on the East and Gulf Coasts; it has not gone on strike since a 44-day work stoppage in 1977.

Freight processing was put on hold during the West Coast International Longshore and Warehouse Union (ILWU) contract negotiations in 2022–2023 as a result of several deliberate labor slowdowns and walk-offs. A 13-day strike at the ILWU Canadian West Coast Ports left almost $12 billion in trade stranded at sea, and it took months to clear up the backlog of containers.
Under the current ILA contract, the hourly wage for union members ranges from $20 to $37. A longshoreman can earn between $150,000 and $250,000 per year, depending on seniority, skill rate, hazard pay, overtime differential, and tonnage bonus (which can range from $15,000 to $20,000 annually).

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