Midnight Walkout to Halt Container and Ro-Ro Operations
PORT NEWARK, N.J. — Employers at the Port have announced the exchange of new contract proposals with the International Longshoremen’s Association (ILA) just hours ahead of a looming strike deadline that threatens to paralyze container handling across East Coast ports.
“In the last 24 hours, the United States Maritime Alliance (USMX) and the ILA have exchanged counteroffers concerning wages,” stated the employers in a message on their website. “USMX has revised our offer upwards and has asked for an extension of the existing Master Contract, as both parties have shown willingness to budge from their previous stances. We remain hopeful that this will enable us to resume negotiations on other outstanding matters and ultimately reach a settlement.”
The consortium of terminal operators and ocean shipping companies has proposed a nearly 50% wage increase, tripled contributions to union retirement plans, enhanced healthcare options, and a commitment to maintain current provisions concerning automation. Additional specifics of the offer were not disclosed.
Though the ILA previously rejected the employers’ proposal, sources have indicated that the union has slightly reduced its demand for a 77% wage hike over the six years of the master contract, while USMX has improved its initial terms.
This newfound momentum in negotiations follows meetings this past week between ILA and USMX representatives, including chief negotiator David Adam, and officials from the Biden administration.
As the expiration of the current master contract looms at midnight Tuesday, the ILA has not yet responded to the employers’ proposal for an extension.
Despite the usual bustle of a Monday at the Port of New York-New Jersey, an urgent atmosphere pervaded as shippers scrambled to meet the strike deadline, which would suspend container and ro-ro services at ports spanning the East and Gulf Coasts. By noon, most dockside container cranes were inactive, while straddle carriers hurried to finalize last-minute shipments. Truck traffic at the Port Newark Container Terminal (PNCT) remained heavy but organized, with frequent horn signals from drivers expressing solidarity with ILA members.
The union has announced that 25,000 container and ro-ro workers, part of a total of 45,000 union employees, will walk off the job and establish pickets at 36 ports from Texas to Maine when the current contract expires. The affected ports manage over 56% of the nation’s annual containerized imports. This would mark the ILA’s first walkout since 1977.
On Monday, container ships were seen leaving the nation’s second-busiest port, while the main north-south yard remained devoid of stack trains. While police from the Port Authority of New York-New Jersey managed traffic amid roadwork, their presence was otherwise minimal.
One truck driver waiting to enter PNCT remarked, “I might be here till the evening, but it feels like an ordinary busy day.”
Though a ro-ro vessel remained in the port, it was uncertain when numerous imported Maseratis stored in a large lot would be shipped out by rail and truck. Rows of container chassis were also lined up, awaiting potential use.
A chaplain who visited three vessels on Monday reported that crews were eager to depart as swiftly as possible.
“The Ocean Carriers represented by USMX [United States Maritime Alliance] wish to maintain the significant profits they are enjoying in 2024, but they are offering ILA Longshore Workers a wage package that is simply unacceptable,” the ILA declared in a statement on its website. “ILA longshore workers deserve fair compensation for their critical role in sustaining and enhancing American commerce.”
The union further accused shipping lines of price gouging, alleging that container shipping rates have surged from $6,000 to $30,000 in recent weeks.
Negotiations for local contracts collapsed in June after the ILA claimed that terminal operators and ocean carriers represented by USMX were not presenting viable contract offers. Current discussions are stalled over wages, benefits, and the integration of automation technology in port operations.
Biden administration officials recently met with ILA leadership and USMX representatives at the White House. Transportation Secretary Pete Buttigieg, acting Labor Secretary Julie Su, and economic adviser Lael Brainard were in attendance at the recent meeting.
President Joe Biden previously stated he would not intervene to prevent a strike; the administration has similarly indicated that it does not plan to use the Taft-Hartley Act, which could compel strikers back to work during ongoing negotiations.
The Port Authority indicated via its website that all container terminals will be closed indefinitely starting Tuesday. This closure includes the suspension of all loading and unloading of containers to and from vessels, trains, and trucks, as well as the unloading of vehicles from ro-ro vessels. Terminal gates at APM Terminals, Maher, PNCT, and Port Liberty Bayonne and Staten Island were expected to close by 5 p.m. Monday.
Bulk shipping operations—including road salt, cement, Belgian block, scrap metal, edible oils, municipal waste, and orange juice—will continue, along with cruise activities.
