Canadian Rail Strike Update
August 23, 2024
Dockside Disruptions: Navigating the Impending ILA Port Strikes and Current Congestion
The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have had 10 successful master contracts since the USMX was established in 1997, and the ILA hasn’t experienced a work stoppage since their last strike in 1977.
As of September 30, 2024, the current master contract will expire, and the ILA is planning to stop work as of October 1st if their new terms are not met. Since June 2024, the ILA has been arguing that the employers were using technology in place of union labor, which was against the contract with the USMX, triggering the re-negotiation conversations for the next contract.
The ILA is asking for:
- Wage increases, including starting wages, reported to be 80% over the next five years.
- Continuation of existing technology language from the previous contracts and no new port, or terminal automation.
- Premier health care benefits.
- Higher employer retirement contributions.
If the ILA and USMX cannot come to an agreement, this strike poses a multi-billion dollar hit to retailers and manufacturers, as this would affect 13 of the nation’s major East and Gulf Coast ports. Due to the timing of all of this, it could pose a threat to holiday shipments as well.
On top of the impending strikes, we are also seeing congestion in ports on the West Coast, and could get worse if the East Coast ports have a work stoppage. The current IPI dwell times are as follows:
- LAX/LGB: 8-10 day IPI dwell times for all ocean carriers.
- Seattle & Tacoma: 10 days of IPI dwell time before departure from port of discharge, due to an increase of import shifts from Canadian ports.
- VAN & PRR: IPI dwell time is around 9 days because of the TCRC rail lockout on August 22nd, pausing all operations with Canada.
As always, Western Overseas is committed to providing valuable updates to our customers and other industry partners. We will continue to monitor the impending strike, and send out updates as they become available.
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