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  August 16th, 2024 | Written by

Maersk Alerts Shippers to Potential Supply Chain Challenges Amid U.S. Labor Negotiations

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Maersk has issued an update concerning the North American market, focusing on the ongoing labor negotiations between the United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA). With the current contract between the two entities set to expire on September 30, industry stakeholders and shippers are growing increasingly concerned about possible disruptions at U.S. Gulf and East Coast ports.

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The ILA has already submitted the required notifications to government agencies and negotiating parties, signaling the possibility of a strike if a new agreement is not reached. However, due to a ‘no strike’ clause in place until the contract expires, no job actions are anticipated before October 1. It’s important to note that these notifications do not guarantee that a strike will occur.

Maersk remains optimistic that both parties are committed to reaching a deal that will keep supply chains robust and efficient. Despite a history of successful negotiations, the potential for a strike looms as long as a new contract remains unsettled.

“Disruptions could be localized or widespread. In the event of a general work stoppage on the U.S. Gulf and East Coasts, even a one-week shutdown could take 4-6 weeks to recover from, with significant backlogs and delays worsening with each passing day,” the Maersk update cautioned.

In case of disruptions, Maersk is prepared to help customers find alternative routes, transportation methods, or distribution schedules to ensure the continuity of their supply chains. Customers are encouraged to maintain close communication with their Maersk representatives to discuss supply chain needs and develop customized contingency plans if necessary.