Update on the ILA Strikes: Looking to 2025

Remember waaaay back in October when the International Longshoreman’s Association (ILA) and the the United States Maritime Alliance (USMX) were unable to reach a deal? It seems as though that was forever ago! After all, we have had holidays, an election, and a lot of big international news since then.

But, it wasn’t really that long ago that the ILA strike threw the entire shipping and supply chain world in limbo at East Coast ports. The strike shut down the ports of Maine all the way down to the ports of Texas.

Miraculously, just in time for the election, the sides announced they reached an amicable agreement. They agreed to a whopping 62% pay increase that would suspend the strike until January 15, 2025- five days prior to inauguration. Strange how it coincides with the election and inauguration, isn’t it?

Once workers returned, the aftermath was nearly three weeks of shipping delays and massive ocean cargo bills for those unlucky enough to have containers hanging out on the water during the strike.

Now, in December, just enough time has passed for the average small business to forget there was an issue to begin with. With year end, holiday orders, and planning sessions for the new year, most small businesses are not even thinking about the impact a looming strike may have.

As you navigate year end and plan for the first quarter ahead, there are some ILA-related updates and concerns you should keep in mind.

Update #1

On November 13, 2024, the USMX issued a press release stating the two sides have been in discussion. However, they have not reached an agreement. The press release is interesting and may be viewed here.

Then came update #2.

Update #2

On December 3, 2024, the USMX issued a statement striving to educate stakeholders on it’s position regarding technology. This statement is well-written and guides the reader through what port modernization means, why it is necessary, and how it will result in higher paying jobs.

I highly recommend reading update #2 and it may be found here.

What This Means

Basically this means that East Coast ports from Maine to Texas have still not reached an agreement. And, I would dare say, they likely won’t.

Here is why.

Politics Involved

It comes as no surprise there is a great deal of politics involved in this dispute. I am not a highly political person, so I am going to give you the bare bones facts with links to my references.

The facts are:

• During the initial strike, President Biden declined to step in and force the ILA back to work. He announced he did not intend to interfere and supported the ILA in it’s negotiations. (Click here to read that announcement)
• President-Elect Trump has also indicated support for the ILA in it’s negotiations and is unlikely to interfere. (Click here to read his statement of support.) However, it is speculated that he may attempt to aid in negotiations.
• President-Elect Trump’s pick for Labor Secretary is Lori Chavez-DeRemer, known to be pro-union (click here to read about the Department of Labor and Labor Secretary’s actual duties- I highly recommend you refresh your knowledge on this Department’s function)(Click here to read about Ms. Chavez-DeRemer)
• The deadline for an agreement to be reached is January 15- President Biden will be a lame duck and power will not yet have transitioned to President-Elect Trump.
• The last strike resulted in increased freight rates for containers en route during the strike. An anticipated rise in Tariffs may also potentially increase the cost of en route containers impacted by the strike.

How This Will Impact Your Business

At this point, it is reasonable to believe that, if the ILA strikes, it will strike between January 15 and January 20 at a minimum. That is five days of lost port productivity, which may result in five weeks of delays.

As I mentioned in this previous post, if the ILA strikes, it will impact your monument business.

Why?

The supply chain for all memorialists- regardless of whether they import or not- may potentially be in limbo for Memorial Day if a strike occurs. Items such as stencil, tools, equipment/machine parts, vehicle parts, and more, may be impacted or delayed.

Additionally, due to anticipated importing delays and tariff increases, our domestic manufacturers will likely experience a higher order volume this spring. That’s a great thing for our industry, but means that retailers need to plan and order early.

How to Prepare

Look at your historical order data. Reports in StoneSpot and Quickbooks Online will aid you in determining how many units of your most popular products you sold last year. Understand those reports and use them to estimate your needs going into 2025.

Estimate supplies needs. Looking back at historical data, estimate your supplies needs and ensure you have it on hand. This includes stencil, litho, etc.

Anticipate breakdowns. Ensure you have any parts you believe may be difficult to source should a strike ensue.

Understand manufacturing. Even if a product is manufactured in the U.S., a manufacturer may use raw materials or equipment that are imported. If they cannot receive those items, their production may be delayed. Work with your sales reps to understand what a potential strike may mean for their role in your supply chain.

The best plan of action you can take is to prepare now. If the ILA does reach a deal with USMX and a strike is avoided, you will be perfectly prepared for spring. However, if a strike does occur, you will be positioned to continue with business as usual.

Look for something new and exciting coming later this month!