Ila And Usmx Reach Six-Year Contract Agreement, Averting U.S. Port Crisis

Port workers from the International Longshoremen's Association (ILA) participate in a strike in the Virginia International Gateway in Portsmouth, Virginia, U.S., October 1, 2024. REUTERS/Jose Luis Gonzalez

The International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) have successfully negotiated a tentative six-year Master Contract, preventing potential major supply chain disruptions at East and Gulf Coast ports.

The agreement comes just days before next week’s critical January 15th deadline and follows a period of uncertainty after a three-day strike in October that ended with a tentative agreement on wage increases and a temporary contract extension. The contentious issue of port automation, however, had remained unresolved.

“This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coast ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong,” the parties announced in a joint statement.

The tentative agreement prevents a renewed port crisis during the final days of the Biden administration and the transition to President-elect Donald Trump’s January 20, 2025 inauguration. Trump has previously aligned with the ILA, representing some 45,000 longshoremen, and voiced strong opposition to port automation, arguing that the cost savings do not outweigh the impact on American workers.

USMX is an alliance of foreign container carriers, direct employers and port associations that serve the East and Gulf Coasts of the United States.

The dispute’s impact on shipping patterns has been significant, with data showing a marked shift in container traffic to West Coast ports. Industry analyst John McCown reports West Coast facilities operating 10.1% above their 52-month average in November, while East/Gulf Coast ports have experienced a 3.4% decline.

The National Retail Federation has noted that concerns over the potential port disruptions, combined with President-elect Trump’s proposed tariff increases, have been driving substantial volume growth in U.S. container imports which is likely to continue through early 2025.

While specific terms remain confidential pending ratification by both ILA rank-and-file members and USMX stakeholders, the agreement has been characterized as a “win-win” that supports American consumers, businesses, and the broader economy.

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