.png)
The Philadelphia dockworkers' strike, which began in early October, has been temporarily resolved. After days of halted operations, a tentative agreement was reached between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX). The union dockworkers will return to work after reaching a tentative agreement for a 62% wage increase. The deal is conditional for 90 days, during which negotiations will continue on other issues. If no final deal is reached, the wage hike will be withdrawn. The union and employers agreed to extend the Master Contract until January 15, 2025, to resolve remaining concerns, such as automation.
Impact of the Strike
The strike, which affected multiple East and Gulf Coast ports, caused significant disruption to supply chains. Key goods, including perishable items, faced delays, and alternative ports experienced congestion as shipments were rerouted. Many businesses, especially smaller importers and exporters, were unprepared for the sudden halt and are now dealing with the aftermath of those delays. Some industries, particularly food and retail, were most affected, with certain imports being unable to move swiftly through the disrupted channels.
What Led to the Strike
The core issues behind the strike were wages and automation. The ILA initially demanded a 77% wage increase to keep up with inflation, as well as a ban on increased port automation, which they believe threatens job security. The USMX had countered with a 50% wage increase and pushed back on eliminating automation. With the tentative deal reached, negotiations will continue, and businesses should be prepared for possible disruptions in early 2025 if talks break down.
What Now?
While port operations have resumed, companies should continue to closely monitor the situation. Disruptions from the strike may linger, especially in industries with tight supply chains or that rely on timely shipments of raw materials and finished goods. Businesses should consider alternative routing options and remain flexible in their logistics strategies to avoid potential delays.
The upcoming holiday season could further strain supply chains, so now is the time to review contingency plans and build inventory where possible. Although the immediate crisis has been averted, the potential for renewed labor action in 2025 looms, and the consequences could be more far-reaching if no long-term agreement is reached.
In need of assistance? Have questions? Give our office a call today at (917) 546-6997, we would be happy to speak with you.
Ready to Learn More About CBP, OFAC,
BIS, FWS, and FDA?
We have over one hundred videos in our educational library on our YouTube channel related to importing, exporting, US Customs, BIS, OFAC, FWS, FDA, NFTs, and so much more. Subscribe to our channel now to stay up to date on the latest on these topics!
Our law firm helps growing companies who import and export comply with government regulations. We love what we do and we take our oath of confidentiality over your matters very seriously. How much? Watch this video to learn about it. CLICK HERE
Wondering "why should you have an attorney on your side?" Click here to watch one of our attorneys, Susan Steinman, break down the critical benefits as to why you want to have one on your side - whether you hire us to help you or another law firm.
Have questions? We are determined to help you.
We listen carefully to clients to ensure our understanding of the legal issues at hand, their factual context, and any limitations that might impact a chosen strategy. Feel free to connect with us using the contact form at the bottom of the Home page or send us an email at contact@clarkespositolaw.com.
Comments