As the 15 January expiration of the master contract between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) approaches, the likelihood of a strike across US east and Gulf coast ports grows. Without an agreement, dock workers are expected to halt operations starting 16 January, prompting carriers to prepare for potential disruptions.

Read also: Port Strikes on US East Coast will Cause Major Supply Disruption into 2025

Despite agreeing to a 62% wage increase in September, negotiations have stalled over automation. The USMX insists automation is critical to improving efficiency, while the ILA argues it threatens job security for port workers. Talks are scheduled to resume on 7 January, leaving just over a week to finalize an agreement.

Carriers have started implementing contingency plans. Danish shipping giant Maersk is urging customers to collect loaded containers and return empties by 15 January to mitigate disruptions. Maersk stated it is “actively developing contingency plans to minimise the impact of any labour disruptions.”

German carrier Hapag-Lloyd announced it will introduce surcharges from 20 January to cover additional costs stemming from potential strikes, slowdowns, or congestion. The surcharges will add $850 per TEU for imports to east and Gulf coast ports but will not apply to cargo already in transit or gated-in before the cutoff date.

Adding to the high-stakes negotiations is the upcoming inauguration of Donald Trump as the 47th US president, five days after the contract expiration. Industry analyst Peter Tirschwell suggested Trump might align with union demands, pressuring ocean carriers to concede, potentially framing himself as a mediator in the crisis.

As the deadline looms, carriers and shippers are watching closely, bracing for what could become a costly disruption to US supply chains.