Assessing the impact of the ILA-USMX deal for the future of U.S. ports
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U.S. Chamber of Commerce-led letter to USTR reiterates support for USMCA European shippers expect disruptions to last two more years, states Maersk survey POLA and POLB volumes see October declines Descartes report points to flattish U.S.-bound imports in October FAA’s flight reductions add some pressure to domestic air cargo amid ongoing government shutdown More Global TradeWith the recent ILA-USMX labor negotiations behind us, the focus now shifts to their impact on supply chains and port operations. Brian Lynch, Transportation Sector Leader at EY Americas, discusses the effectiveness of pre-strike mitigation efforts, the long-term competitiveness of U.S. ports, and the role of automation in the industry.
Supply Chain 24/7: Looking back, how effective were the pre-strike mitigation efforts in minimizing disruptions to supply chains?
Brian Lynch: Leading companies put mitigation actions in place well in advance of the pending ILA strike date. Supply chain variability stemming from the global pandemic forced companies to become more agile and, in some cases, more risk-averse.
Companies have been able to dust off playbooks from the pandemic, from the 2023 ILWU (West Coast) labor actions and the October 2024 ILA labor action to minimize disruption.
SC247: Do you think the resolution can allow people to go back to business as usual, or do you see another labor strike in the future?
BL: The January 2025 ILA – USMX agreement signaled a return to business as usual. While ratification of a six-year agreement by the ILA is still pending, the indication is that the parties will move forth in good faith.
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