US Port Strike Enters Third Day As Queues Form

Lines of container ships are forming outside of major US ports as we enter the third day of the International Longshoremen’s Association strike along the US East and Gulf Coast ports.

With over 40,000 union members understood to have downed tools, ports have stopped operations between Maine in the Northeast and Texas in the South, resulting in the biggest US dockworker strike in nearly half a century.

Currently, no negotiations have been scheduled between the ILA and the United States Maritime Alliance (USMX), but the alliance did signal late on Wednesday that they were open to new talks following government pressure.

Biden’s administration appear to have come down heavily on the side of the union, with the President himself stating “It’s only fair that workers, who put themselves at risk during the pandemic to keep ports open, see a meaningful increase in their wages”.

Meanwhile, several carriers have invoked Force Majeure clauses in their trading conditions. This can apply in law when an event that is not the fault of either party leads to contractual performance becoming impossible, making it unfair to hold either party to their contractual obligations and therefore making the original contract void.

In all probability, carriers are invoking a right to recover any additional operational costs associated with the vessels delayed during the strike action.