The stand off between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (UMX) progressed to the next level Tuesday as the existing contract expired without a deal and now tens of thousands of union workers at three dozen ports around the country are on strike.

As a result, the North Carolina Ports Authority has activated contingency plans for the ports of Wilmington and Morehead City.

While the latter is not affected due to the unique nature of its cargo and operations, the container operations at the Port of Wilmington will be.

“The Master Contract between the International Longshoreman’s Association (ILA) and United States Maritime Alliance (USMX) has expired and there is a work stoppage at ports along the U.S. East and Gulf coasts,” reads the press release from NC Ports. “The Master Contract is an agreement between the ILA and the carriers and direct employers that make up the USMX.  North Carolina Ports is not a party to the agreement and therefore is not a participant in the negotiations. North Carolina Ports is hopeful that both parties will return to the negotiating table and reach an agreement that allows all the ports of the East and Gulf Coast to resume operations.”

The work stoppage in Wilmington affects the following:

  • All vessels must complete work, and vacate the berth at the Port of Wilmington by 11:59 pm on Monday, September 30. 
  • After a work stoppage, if a vessel does not have prior approval, it will not be brought alongside the berth at the Port of Wilmington.
  • No impacted carrier’s rail / intermodal cargo will be worked on or off the rail at the Port of Wilmington.
  • All import cargo on the at the Port of Wilmington, either within free time or in demurrage, should be delivered prior to October 1.
  •  No cargo will be delivered from the Port of Wilmington once a work stoppage begins.
  • There are no restrictions on the receipt of export cargo. 
  • Export cargo will be received while our gates at the Port of Wilmington are open.
  • NC Ports will not be liable for any damage to or loss of cargo that remains on terminal at the Port of Wilmington during the work stoppage.
  • The billing clock will be paused during the work stoppage.
  • NC Ports is not aware of any provisions between the ILA and the USMX permitting refrigerated containers to be monitored or maintained during the work stoppage.
  • Charlotte Inland Port (CIP) will operate as normal.

Andy Ellen, President and General Counsel of the NC Retail Merchants Association told Carolina Journal last week he was concerned about the potential devastating impacts on the economy and consumers’ pocket books.

“The 36 ports impacted receive 41% of the country’s containerized port volume. North Carolina‘s retailers are very concerned a strike will cause severe disruption to the supply chain, similar to what we saw in 2021, and that consumers will see product shortages and higher prices on store shelves at a time when inflation is just starting to ease,” Ellen said. “An elongated work stoppage will also significantly impact the 4th quarter holiday shopping season.”

The strike is estimated to cost the US economy between $2-$5 billion a day, nationally, in trade disruptions.

The contract dispute centers on pay raises and job protection against automation, with the ILA rejecting UMX’s 50% pay raise offer, pushing for at least 62% wage increases for members as well as guarantees that jobs won’t be replaced by automation.

“We are prepared to fight as long as necessary, to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve,” ILA leader Harold Daggett told reporters on Tuesday.