Labor negotiations at the US ports have reached a deadlock. Maersk is urging customers to withdraw their goods.

Global container shipping giant Maersk (AMKBY.US) is urging customers to remove goods from the US East Coast and Gulf Coast ports by the deadline of January 15 to avoid a potential port strike in the days leading up to President-elect Trump's inauguration. In a customer advisory issued on Tuesday, Maersk stated, "A strike may take place if no agreement is reached by January 16. However, there have been no new developments in negotiations since our last communication." It is worth noting that in a previous customer advisory on December 19, Maersk had stated, "The situation remains fluid as we wait for further developments, but the likelihood of a strike increases every day without a finalized agreement." The International Longshoremen's Association (ILA), a union representing dockworkers at major ports from Boston to Houston, with a membership of 47,000, has been attempting to negotiate a new contract with the United States Maritime Alliance, representing employers, in recent months. Under pressure from the Biden administration, the ILA and USMX reached a preliminary agreement on wage issues in early October last year and agreed to extend the main contract until January 15, 2025 to return to the negotiating table to discuss all other outstanding issues. The temporary agreement reportedly includes a 62% pay raise over the next six years. However, they have not resolved the issue of automation. Container shipping companies and operators at ports along the East Coast and Gulf of Mexico had previously stated that they would not continue negotiations with ILA dockworkers on a new six-year contract if they had to forfeit the right to invest in semi-automated cargo handling equipment. USMX stated, "Modernization and investment in new technology are core priorities for reaching a successful new main contract." President-elect Trump has expressed support for workers in their fight against automation that threatens their jobs. With negotiations at a standstill between the ILA and USMX, Maersk stated in their latest statement, "We strongly recommend customers to remove loaded containers from ports on the US East Coast and Gulf of Mexico by January 15, and return empty containers."