News

At 12:01 am on 1 October, workers from the International Longshoremen’s Association (ILA), serving ports in the US Gulf and East Coast, stretching from Texas to Maine, walked off their jobs and began picketing.

While cargo shippers had been expediting their throughput into/out of ports in late September in advance of the potential labor stoppage the reality of a real stoppage has intensified the already heightened haranguing from all concerned, including a statement that from the ILA leader that a strike “could cripple the country.”

Republican legislators are urging President Joe Biden, a Democrat, to intervene- by invoking the Taft-Hartley Act, which would require both sides to come to the bargaining table, in an 80-day cooling off period.

Two Republican members of Congress, House Transportation and Infrastructure Chairman Sam Graves (Committee on Transportation and Infrastructure), representing Missouri, and Maritime Subcommittee Chairman Daniel Webster (Subcommittee on Coast Guard and Maritime Transportation), from Florida, wrote to President Biden urging him to intervene and end the strike, using authority in the Taft-Hartley Act. They expressed concerns about the potentially deleterious impacts on supply chains.

The timing of the strike, less than five weeks ahead of the US Presidential election, is influencing the dialogue, with both candidates, Biden and his Republican opponent, Donald Trump, sensitive on matters relating to organised labour, which typically backs the Democratic side.

In their letter, the two Congressmen pointed to actions in 2002 by then Republican President George W. Bush, saying: “Recognizing the grave economic impact to our economy, soon after the lockout began, President George W. Bush invoked his powers under the Taft-Hartley Act to restore operations at West Coast ports. As a result, port operations resumed, negotiations continued, and the International Longshore and Warehouse Union and Pacific Maritime Association agreed to a new contract.”

In an interview on the Fox TV network Republican Larry Hogan, the former Governor of Maryland now running for a post as US Senator, said that he had been to visit the Port of Baltimore and had talked to people from both sides. He said: “My focus is to get the parties back to the negotiating table.” Noting the potential for supply chain disruptions from a long-duration strike, he emphasized: “I hope that it gets settled sooner rather than later.”

In New Jersey, where the major East Coast terminals at Port Elizabeth and Port Newark are located, Governor Phil Murphy, a Democrat, posted on Instagram: “The International Longshoremen’s Association plays a vital role in moving goods through our ports and keeping our supply chains moving. We urge the US Maritime Alliance and the ILA to reach a fair agreement that respects workers’ rights and restores operations.”

Lawyers at Blank Rome, with a leading Admiralty practice, informed clients: “Ship crews should be sure to exercise due diligence in caring for cargo during the strike to minimize the risk of damages and claims. While cargo loss and corresponding damages caused by strikes, lockouts, and labor restraints are excused from liability under the Carriage of Goods by Sea Act (‘COGSA’), the defense only applies to the extent the damage or loss is actually caused by the strike. A carrier is still exposed to liability for damage not caused by the strike unless another defense applies.”
Resources
Letter to Biden from Reps Webster and Graves

https://transportation.house.gov/news/documentsingle.aspx?DocumentID=407826

Blank Rome legal advisory

https://www.blankrome.com/sites/default/files/2024-10/10.01.24_maritime.pdf