The International Longshoremen’s Association (ILA), representing 45,000 workers at major U.S. container ports from Texas to Maine, is set to meet for two days starting Wednesday to address wage demands and strategize for a possible strike on October 1. Negotiations with the United States Maritime Alliance (USMX) have reached a standstill, as both parties remain divided on pay, automation, healthcare, and retirement benefits.

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Sources indicate the ILA is pushing for a 77% wage increase under the new contract. Industry analysts believe the final agreement will likely exceed the 32% raise achieved by West Coast longshore workers in last year’s negotiations.

ILA President Harold Daggett has made it clear that if no deal is reached before the current six-year contract expires on September 30, workers will strike. Despite attempts by USMX to arrange further talks, an agreement remains elusive.

If the strike materializes, it could disrupt key ports such as New York/New Jersey, Houston, and Charleston, South Carolina. The potential for a work stoppage raises concerns about the impact on supply chains, especially with the holiday season and U.S. elections approaching.

Vincent Clerc, CEO of A.P. Moller-Maersk, a USMX member, warned last week about the “serious ripple effects” a strike could have on global trade, which is already strained. While past negotiations have narrowly avoided walkouts, the absence of a resolution continues to heighten concerns.

Many shippers have preemptively moved goods to minimize risk, but tensions persist. Retail groups, including the National Retail Federation and the American Apparel & Footwear Association, have urged both sides to return to the negotiating table. NRF CEO Matthew Shay stressed the need for immediate government intervention to help facilitate a new agreement, warning of the economic impact a strike could have on consumers and the retail industry.