US East Coast and Gulf Port Workers Return to Negotiating Table

The U.S. Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) have agreed to resume contract negotiations on January 7th. The current contract extension expires on January 15th, setting up another potential strike should an agreement not be reached. Port modernization remains the most challenging sticking point.

With the deadline looming, industry is preparing for another work stoppage. Maersk is strongly encouraging its customers to pick up their laden containers and return empty containers at U.S. East and Gulf Coast ports before January 15 to help mitigate any potential disruptions at the terminals. Ocean carrier Hapag-Lloyd has recently announced two surcharges, the Work Disruption Surcharge (WDS) and Work Interruption Destination Surcharge (WID) that would become effective on Jan. 20, 2025, in the event of a strike. The company stated that the surcharges cover additional costs from labor disruptions, strikes, slowdowns, unrest, congestion, and other unforeseen events that may delay operations and incur extra handling, storage, and feeder service costs.