Maersk Warns of Potential Supply Chain Disruptions as U.S. Labor Strike Looms

A.P. Moller — Maersk has provided an update on the North American market, highlighting the ongoing labor negotiations between the United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA). The current contract between the two parties is set to expire on September 30, raising concerns among industry stakeholders and shippers about potential disruptions at U.S. Gulf and East Coast ports.

The ILA has already filed required notifications with government agencies and negotiating parties regarding the possibility of a strike if no agreement is reached. However, due to a ‘no strike’ clause in effect until the contract’s expiration, no job actions are expected before October 1. The filing of notifications does not necessarily indicate that a strike will occur.

Maersk expressed confidence in the parties’ commitment to reach an agreement that ensures robust and efficient supply chains. Despite a history of successful negotiations, the possibility of a strike remains without a settled contract.

“Disruptions may be localized or more broad-based. Should a general work stoppage occur on the U.S. Gulf and East Coasts, even a one-week shutdown could take 4-6 weeks to recover from, with significant backlogs and delays compounding with each passing day,” Maersk update said.

In the event of disruptions, Maersk is prepared to assist customers in exploring alternative routes, modalities, or distribution schedules to maintain their supply chains. Customers are encouraged to stay in close contact with their Maersk representatives to communicate supply chain requirements and develop tailored contingencies if needed.

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