State Port Authority is working to minimize disruptions from strike

October 1, 2024 – Mobile – the International Longshoreman's Association (ILA) has gone on strike across the country effective at midnight on Monday impacting the nation's ports including the Port of Mobile. On Monday the Port Authority announced that it would stay open and hoped to minimize any disruptions caused by the strike.

"The Port of Mobile is both a landlord and operating port with diverse cargo handling capabilities, from steel and coal to general cargo and containers," the Port Authority wrote in a statement. "If a work stoppage occurs, impacts should be localized to the container terminal, which is operated by APM Terminals. We are working to minimize potential disruptions and ensure the fluidity of cargo movement in other areas of the Port."

"The Port has longstanding and historically good relationships with union labor, whose work is critical to the Port's ability to deliver for Alabama and the entire U.S." the Port Authority continued. "At the end of the day, a strike isn't good for anyone, and we hope to see the ILA come back to the table for productive conversations soon."

APM Terminals said in their statement that they had contingency measures in place for the potential work stoppage.

"As we approach a potential International Longshoremen's Association (ILA) strike on October 1, 2024, we want to reassure you that APM Terminals Mobile is fully dedicated to ensuring operational continuity and minimizing any disruptions to your supply chain. We have developed a comprehensive contingency plan designed to address various scenarios, allowing us to maintain the highest standards of service during this time."

"That being said, we strongly encourage arrangements to remove cargo from the terminal prior to October 1st, whether such cargo is still within free time or already incurring demurrage," APM continued. "APM Terminals Mobile expects some congestion immediately following any work stoppage as we work through the backlogs created."

Despite the strike APM terminals insists that it will resume normal gate hours (6AM for Orange Pass and 7AM– 5 PM).

APM said that Export will be received as usual, with regular gate cutoffs through Monday, September 30th, except for live reefers. o Imports: Import delivery will proceed as normal.

APM told its customers to "consult your rail providers for any updates or changes to their operational plans."

They claim that vessel operations will proceed as scheduled, in coordination between ocean carriers and APM Terminals Mobile.

Customers were warned to pickup all of their live refrigerated containors before the nedo fo the day on Monday.

"We highly encourage customers to retrieve all live reefer imports prior to the close of business September 30th," APM explained. "Export reefers will be accepted up to the cutoff of any vessel scheduled to work prior to September 30th. However, APM Terminals Mobile will not be responsible for loss or damage to contents of reefers not loaded on vessels or not picked up before the close of business September 30th as they will not be monitored and maintained if the terminal is closed due to work stoppage."

"We remain focused on minimizing the impact on your operations and will provide updates as the situation evolves," APM concluded. "Thank you for your continued trust in APM Terminals Mobile."

A protracted strike could severely limit the amount of cargo that is loaded and unloaded at Mobile and the other ports. American exports could be delayed from reaching their destinations leading to international customers seeking other suppliers. Imported goods could become scarce as good pile up in ports. Manufacturers – such as automakers - may not be able to get imported parts forcing them to shut down operations at some points. A prolonged strike at the ports could potentially trigger a recession.

The Biden-Harris administration is encouraging the parties to come to terms.

A key issue in this work stoppage is new technology which has the potential to further reduce the number of workers needed at ports. The longshoremen are opposed to the implementation of any additional labor saving technologies – a demand that the ports are unwilling to agree to.

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