Longshoremen Walkout May Cause Material Delays
As the International Longshoremen’s Association (ILA) strikes over a new master contract, construction professionals nationwide are closely watching how the walkout—impacting ports from Texas to Maine—will affect their businesses.
Talks between the ILA and the U.S. Maritime Alliance broke down over wages and a ban on automating key dockwork machinery, like cranes and trucks, according to the Associated Press. This is the union's first strike since 1977.
The affected ports are crucial entry points for construction materials, machinery, and other goods, reported The Wall Street Journal. Delays in material delivery could ripple across the country, according to Manufacturing Dive.
Oil and LNG exports from Gulf Coast ports are expected to continue unaffected, as ILA has limited involvement in those operations, The Wall Street Journal added.
Bill Flemming, senior vice president at Cumming Group, said the construction industry would feel the strike’s impact immediately. A week-long strike could cause delays of weeks or months, as ships back up and distribution slows.
Gilbane, a Providence-based construction giant, estimates a one-week strike would cause a four-to-six-week backlog, while a two-week strike could extend into 2025, according to Jay Pendergrass, the firm’s vice president.
“A strike may significantly delay delivery dates and increase prices for equipment, materials, and supplies,” Pendergrass noted in a recent supply chain update.
Compounding the issue, Hurricane Helene’s recent devastation in the Southeast has spiked demand for repair materials, adding pressure to East and Gulf Coast ports. Simonson emphasized that further storms could worsen the situation.
Contractors and supply chain experts suggest mitigating the strike’s impact by increasing inventories, exploring alternative routes, considering air freight, and sourcing from nearshore manufacturers.
Despite preparations, Flemming said, “The strike will dramatically slow the shipping of goods and materials used in all commercial building.”
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