New port worker strikes threaten in the USA and Canada

The ongoing tensions between trade unions and employers at the ports of the USA and Canada are escalating once again. After the port labor strikes on the US East and Gulf Coasts in October 2024 attracted international attention, the conflicts remain unresolved. In Canada, the work stoppages are also intensifying. Companies and freight forwarders must be prepared for further disruptions in the supply chains.

Progress in negotiations in the USA
Following the strikes in October, the existing collective agreement between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) was extended until January 15th, 2025. Nevertheless, the subsequent rounds of negotiations in November failed to make any significant progress:

• Automation as a central point of conflict: ILA strictly rejects any form of automation, as it sees jobs at risk. USMX, on the other hand, sees the technology as an opportunity to increase the efficiency of the supply chain and to create jobs at the same time.
• Discontinued discussions: The negotiations were ended early as the parties showed no willingness to agree.
• New strikes expected in January: With the expiry of the collective agreement in mid-January 2025, the likelihood of new work stoppages increases.

In addition, shipping companies such as Maersk have begun to adjust their shipping routes to minimize the impact of potential strikes. However, these measures, as well as the delays and storage fees from past strikes, have caused transportation costs to rise further. ILA has received political support: Donald Trump spoke out against automation and emphasized the importance of protecting port workers.

Who are the negotiating partners?
International Longshoremen's Association (ILA):

• Aim: protection of jobs and rejection of automation.
• Considers strikes to be a legitimate means of negotiation, but does not see a quick solution.

United States Maritime Alliance (USMX):

• Aim: Increase efficiency using technology without eliminating jobs.
• Focus on strengthening the supply chain in the long term and creating secure jobs. 

Strikes at Canadian ports
Labor disputes are also escalating in Canada. The International Longshore and Warehouse Union (ILWU) last called a strike on December 6th, 2024, which took place on December 10th, 2024. These strikes are directed particularly against the British Columbia Maritime Employers Association (BCMEA) and DP World.

• Regular and short-term strike calls: These lead to uncertainty in logistics planning.
• Canada Post strike: The work stoppage by the Canadian postal company has been ongoing for almost a month. However, employees are to return to work from December 17th and remain under current conditions until May 2025.

Conclusion and outlook
The ongoing wage disputes in the USA and Canada pose considerable challenges for global logistics. Companies must continue to prepare for increased costs, delays and limited planning reliability. Negotiations between the parties remain the key factor in finding sustainable solutions and securing the flow of goods.