UPS and West Coast port labor contracts face overlapping expirations in 2028
In 2028, the contract between the International Longshore and Warehouse Union and the Pacific Maritime Association will expire on July 1, while the UPS‑Teamsters master contract ends a month later on August 1. Together, West Coast ports handle 37.2% of U.S. containerized import tonnage and UPS moves more than 17 million packages daily, representing roughly 5‑6% of U.S. GDP.
The overlapping talks come as the United States heads into a presidential election year, raising pressure on the White House to intervene or stay out if negotiations falter. Retail industry officials warn that simultaneous slowdowns at ports and in parcel networks could create huge backlogs and delay holiday deliveries. Shippers may try to front‑load imports and warehouse goods earlier in the spring, though UPS’s real‑time parcel flow limits how much volume can be shifted.
“The ILWU has the same expiration date as a UPS contract. So imagine this. Imagine us shutting down the largest logistics company in the country and also the ports on the West Coast,” Sean O’Brien, Teamsters President said.
“The implications are significant if there is any connection between any slowdowns or disruption, if they coincide. You could have huge backlogs at ports and with parcel shipments. You won’t be able to get products on time,” a retail industry official who asked not to be identified said.
As previously reported by FreightWaves, the Teamsters president is already publicly telegraphing that a strike is inevitable unless UPS accedes to new demands for the most highly compensated parcel workforce in the United States. Analysts say the current contract puts UPS at a significant competitive disadvantage compared to Amazon, FedEx and dozens of independent last‑mile delivery couriers. The ILWU has a reputation for hard bargaining, dating back to its 2002 standoff with management.
What we know
The contract between the International Longshore and Warehouse union and the Pacific Maritime Association is set to expire on July 1, 2028.
One month later, the five-year master contract that governs benefits and work conditions for UPS (NYSE: UPS) drivers and parcel handlers will end.
West Coast ports, anchored by the massive Los Angeles-Long Beach complex, handle 37.2% of U.S. containerized import tonnage, and 9% of U.S. GDP, according to the Pacific Maritime Association.
UPS delivers more than 17 million packages per day, about 18.6% of total domestic volume, according to ShipMatrix, and the total amount of parcel freight moving through its system represents an estimated 5% to 6% of U.S. GDP.