The industry is currently on the verge of a major port strike in the United States, which could halt operations at 36 ports throughout the US East and Gulf Coasts.

Talks between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have broken down over contracts that are set to expire on September 30th.

The ILA union represent over 85,000 workers and have confirmed they are set to strike on October 1st, which would cripple ocean freight services in and out of the country. The dispute is over wage levels, pensions and the union’s opposition to automation.

This week, the Biden administration advised that it would not invoke its legal powers to intervene, in response to a letter signed by 177 trade associations which urged the US government to act if negotiations do not resume. The Port of New York/New Jersey, which is the largest on the East Coast, also confirmed that it has started preparations for a complete work stoppage from October 1st.

As a result of the strike threat, ocean freight carriers have reacted by applying emergency surcharges to ocean freight shipments from the beginning of next month.

Fingers crossed the strike can be avoided in the next few days.