The US logistics industry is bracing for another potential port strike as the International Longshoremen's Association (ILA) dockworker union and the US Maritime Alliance (USMX) faces another critical negotiation deadline on January 15, 2025. This date marks the expiration of a temporary agreement reached in the aftermath of the union's first major strike back in October 2024. If the latest negotiations between the ILA and the USMX do not result in an agreement, we are very likely to see another major port strike in 2025.
During the October 2024 strike, ports across the United States were paralyzed as thousands of dockworkers walked off the job. The strike—the first significant action by the ILA in nearly a decade—caused widespread delays and disruptions to supply chains already under pressure from global economic uncertainties.
To alleviate the immediate crisis, the ILA and port operators negotiated a temporary deal to reopen the ports, allowing goods to flow while granting both parties additional time to hammer out a long-term agreement. However, with the January 15 deadline rapidly approaching, tensions remain high, and signs point to another potential shutdown.
Many experts within the logistics and shipping industries anticipate that the ILA will proceed with another strike, citing limited progress in negotiations. The union's leadership has expressed frustration over what they describe as "minimal movement" from port operators and shipping companies in addressing their key demands related to port automation. Meanwhile, port operators argue that meeting the union's demands would significantly increase operating costs, which could ultimately be passed on to consumers.
A second strike would likely shut down the majority of U.S. ports, including major hubs such as Los Angeles, Long Beach, New York/New Jersey, and Miami. Such a disruption could have severe ripple effects, delaying shipments of critical goods, increasing shipping costs, and exacerbating supply chain challenges that have become all too familiar in recent years.
A prolonged strike would impact industries ranging from retail to manufacturing, potentially leading to shortages of imported goods and components. Retailers, many of whom have already faced delays in restocking shelves during the holiday season, could see further disruptions to their inventory. Manufacturers relying on just-in-time supply chains may be forced to halt production lines, creating additional economic strain.
Consumers, too, would feel the effects, with potential price increases on imported goods such as electronics, clothing, and automotive parts. In anticipation of the strike, some companies have already begun rerouting shipments to alternative ports or increasing their use of air freight, both of which come with higher costs.
As the January 15 deadline looms, both the ILA and port operators are under intense pressure to find common ground. However, with both sides deeply entrenched in their positions, the prospect of avoiding another strike appears increasingly unlikely.
The coming week will be crucial as businesses prepare for potential disruptions. We continue to communicate closely with our customers and continue to in-gate and pull containers before next week's potential strike.
In the event of another shutdown, ocean carriers are again expected to suspend charges on storage.