Global container shipping giant Maersk (AMKBY.US) is urging customers to remove cargo from the East Coast of the United States and the Gulf of Mexico before the January 15 deadline to avoid a potential strike at US ports just days before President-elect Trump takes office.
In a customer advisory issued on Tuesday, Maersk stated, "If no agreement is reached by January 16, a strike may occur. However, there has been no new progress in negotiations since our last communication." Notably, in a previous customer advisory on December 19, Maersk indicated, "While we await further developments, the situation remains dynamic, and the likelihood of a strike increases daily without a finalized contract."
The International Longshoremen's Association (ILA) is a union representing 47,000 members, including dock workers at major ports along the East and Gulf coasts, from Boston to Houston. In recent months, the ILA has been trying to negotiate a new contract with the United States Maritime Alliance (USMX), which represents employers.
Under pressure from the Biden administration, the ILA and USMX reached a preliminary agreement on wage issues in early October last year and agreed to extend the main contract until January 15, 2025, to facilitate negotiations on all other outstanding issues. Reports indicate that this temporary agreement includes a 62% pay increase over the next six years.
However, the two sides have not resolved the issues surrounding automation. Previously, container shipping companies and operators at East Coast and Gulf Coast ports indicated that they would not continue negotiations with union dockworkers for a new six-year contract if they were to relinquish their rights to invest in semi-automated cargo handling equipment. USMX stated, "Modernization and investment in new technologies are core priorities for successfully reaching a new master contract." Meanwhile, President-elect Trump has expressed support for workers fighting against automation that threatens their jobs.
Due to the stalemate in negotiations between the ILA and USMX, Maersk's latest statement advises, "We strongly recommend that customers remove loaded containers from East Coast and Gulf Coast ports before January 15 and return empty containers."
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Post time: Jan-06-2025
