Second U.S. Port Strike Averted After Union and Employers Reach Agreement

The union representing around 45,000 dockworkers on the East and Gulf Coasts of the United States and their employers announced a tentative six-year agreement on Wednesday, averting a new strike that could have disrupted supply chains and significantly impacted the U.S. economy.

In a joint statement, the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) described the agreement as a “win-win.” The deal includes a resolution on automation, which had been the most contentious issue during the negotiations.

“This agreement protects the ILA’s current jobs and establishes a framework to implement technologies to modernize ports on the East and Gulf Coasts and create new jobs. Additionally, it will enhance port safety, efficiency, and capacity, contributing to more resilient supply chains,” the groups stated.

While the specific terms of the agreement have not been disclosed, both parties agreed to continue operating under the current contract until the new one is ratified.

Negotiations, extended until January 15, focused on resolving the impasse over automation, which had raised concerns among industry executives and shipping customers. Failure to reach an agreement could have led to a second ILA strike just days before President-elect Donald Trump’s inauguration on January 20.

In October, a three-day ILA strike caused increased freight costs and cargo delays at 36 affected ports. That strike ended after employers agreed to a 62% wage increase for workers over the next six years.
The employers include terminal operators such as APM (a subsidiary of Denmark’s Maersk) and U.S. divisions of significant majors like China’s COSCO Shipping and Switzerland’s MSC.

The National Retail Federation (NRF), representing major importers like Walmart and Target, welcomed the agreement, emphasizing that it brings stability to the shipping sector and reduces the risk of future disruptions.

“The agreement also paves the way for much-needed modernization efforts, which are essential for the future growth of these ports and the overall resilience of the U.S. supply chain,” said Jonathan Gold, Vice President of Supply Chain and Customs Policy at NRF.

Source:  Noticias Agrícolas

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