The Danish shipping company Maersk is concerned about the negotiations between the US port union ILA and the employers’ association.
If no agreement is reached, it is very likely that supply chains will be interrupted. The contract between the International Longshoremen’s Association (ILA), which represents dockworkers on the US East Coast, and the United States Maritime Alliance (USMX) expires on 30 September. So far, the two parties have been unable to reach an agreement, with the result that the ILA has already announced that it will call strikes from 1 October if no agreement has been reached by then. The association recently demanded significantly higher wages for port workers, while the automation of work processes in ports is also a contentious issue.
ILA calls for strikes
In a recent report on the North American market, the shipping company Maersk also referred to the impending strike. Although the ILA’s announcements do not yet mean that there will actually be a strike, the possibility remains, the company estimated. The company is hopeful due to the long-standing partnership between the two associations, which has not been affected by strike action for over 40 years. Maersk is confident that both parties will reach an agreement to ensure the continued existence of the supply chains. Should a strike occur, however, the consequences would be enormous.
“Disruption can be localised or more widespread,” the company’s statement said. “Should a generalised work stoppage occur on the US Gulf and East Coasts, even a week-long shutdown could take four to six weeks to recover from, with significant backlogs and delays increasing with each passing day.”
In the event of disruptions, Maersk is prepared to assist customers in finding alternative routes, modalities or distribution plans to maintain their supply chains.
