Another East Coast Port Strike Averted As New Deal Reached

Another potential supply chain crisis has been avoided as the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have announced that they reached a tentative deal on a new contract one week before workers along the entire East Coast and Gulf Coast ports of the United States were to go on strike.

“We are pleased to announce that ILA and USMX have reached a tentative agreement on a new six-year ILA-USMX Master Contract, subject to ratification, thus averting any work stoppage on January 15, 2025,” the two sides said in a joint statement.

“This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coasts ports – making them safer and more efficient and creating the capacity they need to keep our supply chains strong. This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace.”

Sticking Points

During a historic three-day strike in October, the U.S. economy was projected to lose between $3.8 billion and $4.5 billion each day of the work stoppage, according to analysts at J.P. Morgan.

While crucial agreements were made regarding wages, the 100-day tentative deal was reportedly a result of tabled disagreements over automation.

Although details of the new agreement haven’t been disclosed, a compromise was reached on semi-automation at the ports, CNN reported. While USMX can implement new technology like cranes that can perform some tasks without human involvement, the contract also gives the ILA guaranteed jobs directly associated with any new technology.

On Wednesday, just a few hours before the deal was announced, John Janson, vice president of global logistics at SanMar – PPAI 100’s No. 1 supplier – told PPAI Media that there was a sense of optimism after both parties remained silent after a secret meeting on Sunday before resuming negotiations on Tuesday.

“I tend to take no news as a positive because neither side has come out rattling their sabers, saying the other side is being completely unreasonable,” Janson said.