East, Gulf coast ports and railroads warn customers of potential strike

East and Gulf coast ports and some railroads have begun notifying their customers that they're preparing for a potential work stoppage that could begin Oct. 1 by the International Longshoremen’s Association (ILA).

The ILA and United States Maritime Alliance (USMX) have been unable to reach a new master contract for all maritime container ports along the East and Gulf coasts. The current contract expires Sept. 30. The ILA has indicated the parties are far apart in reaching an agreement.

"In anticipation of a strike, CSX is making every effort to accommodate as much freight as possible in a fluid situation," the Class I said yesterday in a service advisory. "We will continue to monitor and communicate as the situation progresses and assist customers with recovery efforts once an agreement is made."

The Port Authority of New York and New Jersey (PANYNJ) on Sept. 23 informed customers and other partners what they can do to prepare for a strike.

"[PANYNJ], our container terminal operators and intermodal rail providers are fully dedicated to ensuring continuity of operations and to minimizing any disruption to your supply chain as best we can," port officials said. "To that end, it is important that you do everything possible to pick up your import cargo before close of business on Monday, Sept. 30 as there will be no opportunities to deliver any cargo once a strike begins."

The Port of Virginia announced that it will begin halting cargo operations on Sept. 30.

"Those steps will include an orderly cessation of cargo operations at Norfolk International Terminals, Virginia International Gateway, Newport News Marine Terminal, Pinners Point Container Yard, Portsmouth Chassis Yard, Reefer Service Area and the Damage Annex," Virginia port officials said yesterday in a notice. The Port of New Orleans and Port of Houston sent similar notices to their customers.

Meanwhile, the U.S. Department of Labor and Federal Mediation & Conciliation Service (FMCS), and other federal agencies have been in contact with USMX, the group announced Sept. 23.

“Despite additional attempts by USMX to engage with the ILA and resume bargaining, we have been unable to schedule a meeting to continue negotiations on a new master contract," USMX officials said. "We remain prepared to bargain at any time, but both sides must come to the table if we are going to reach a deal, and there is no indication that the ILA is interested in negotiating at this time."

Earlier this month, dozens of trade and business associations asked the Biden administration to help the ILA and USMX to reach a solution.

"At this critical juncture, it is imperative that the parties return to the table without engaging in disruptive activities that could harm the economy and the millions of businesses, workers and consumers who rely on the seamless flow of goods, both imports and exports," the associations said in a Sept. 17 letter to Biden.