Maintaining Connections Amid Changes in Port Operations

UPDATE 10/4/2024

ILA and USMX Reach Tentative Agreement                

The ILA and USMX have come to a preliminary agreement, temporarily suspending the Longshoremen Union Strike through January 15. Negotiations will continue in the coming months, while the union returns to work today.

We are in open communication with our suppliers, and our logistics teams are working to proactively manage any changes in port activity. Palmer Holland is continuously monitoring the situation and is committed to keeping you up to date on any new developments.
 

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Valued Customer,

Following the expiration of their contract with the United States Maritime Alliance (USMX), the International Longshoremen’s Association (ILA) union, which represents port workers located in the East Coast and Gulf Coast ports, elected to strike on October 1st at 12:00 AM EST. The strike will impact approximately 45,000 members of the ILA located at ports from Maine to Texas. The ILA’s decision to strike was predicated on requests for increased wages and protections against automation. While the ILA and USMX have been negotiating in the past day, there is no clear indication of when the strike will conclude.

Supply chain experts estimate that each day of the strike could cause an additional 3-5 days of delays to clear shipments. Those experts further contend that the strike won’t immediately impact consumers if it lasts only a few days. However, if the strike becomes drawn out to more than a few weeks there would be substantial impact to supply chains, potentially leading to higher prices. The following articles from the AP, ACD (Alliance for Chemical Distribution), ILA, and USMX provide additional details. 

• Associated Press - Dockworkers at ports from Maine to Texas go on strike, a standoff risking new shortages
• Alliance for Chemical Distribution - Port Strike Resources & Updates
• International Longshormen’s Association – ILA News
• United States Maritime Alliance -  News & Updates

While the immediate impact is still unknown, Palmer Holland is working with our suppliers and transportation providers to understand specific inbound shipments that may become affected by the strike. As your distributor, we are committed to stocking inventory to stave off short-term disruptions to supply. Steps we’ve already taken include increasing the inventory position for forecasted demand, adjusting sourcing strategies to route inbound shipments to alternate ports, and ensuring visibility to inbound freight for which we control. Palmer Holland will remain steadfast in supporting you to share information on potential disruptions caused by the strike. If you have questions about the products you purchase from Palmer Holland or collaborative supply chain ideas, don’t hesitate to contact your Account Management Team.

Thank you for your continued partnership,

Palmer Holland