A brief update regarding the U.S. labor strikes at ports along the Eastern and Gulf coasts:
Beginning on Tuesday, October 1, 2024, 50,000 members of the International Longshoremen’s Association (ILA) went on a labor strike for better pay and the promise of disallowing the introduction of automated processes. In a recent article, we further discussed the strike’s reasonings and plausible effects.
On the morning of Friday, October 4, 2024, the striking members of the ILA returned to work. The group announced on the night of October 3rd that they tentatively accept the United States Marine Alliance’s latest offer. By January 15th, they hope to have a final contract in place with more details.
Until this is finalized, here’s what we know about the offer:
A $4 per hour pay raise over six years, amounting to a total of a 62% pay raise over the course of the contract.
An agreement over the use of automation has not yet been negotiated but is in the works.
While a final answer remains up in the air, our ports have re-opened and gained the chance to catch up on halted imports and exports.
Remaining issues
As the first major strike in the area since 1977, this labor strike had a significant impact on the U.S. economy. These ports are vital for imports and exports, and their closure highlighted vulnerabilities in global supply chains. Daily losses were estimated at $5 billion, causing widespread concern across industries. However, with a quick resolution, lasting economic damage is unlikely.
With thousands of containers displaced and many piling up at-dock, it’s estimated that it will take 2-3 weeks for import traffic to return to its normal state. While delays will persist in the short term, businesses are expected to recover quickly, and normal port operations are anticipated to return soon.
