Queues of cargo ships are forming outside of major US ports as we enter the third day of the International Longshoremen’s Association port strike along the US East and Gulf Coasts.
With over 40,000 union members believed to be participating in the walk out, ports have stopped operations between Maine in the Northeast and Texas in the South, resulting in the biggest US dockworker strike in almost half a century.
At present, no negotiations have officially 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.
President Biden appears to have come down heavily on the side of the union, 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”.
In the meantime, several ocean freight 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 layman’s terms, carriers are invoking a right to recover any additional operational costs associated with the vessels delayed during the strike action.
