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Strikes at US ports that could have caused supply chain chaos have been averted after container port operators and union bosses reached a tentative agreement over a new employment contract.
Late last night the International Longshoremen’s Association (ILA) union and United States Maritime Alliance (USMX) announced they had reached a tentative agreement on all items for a new six-year master contract.
The two sides agreed to continue to operate under the current contract until the union can meet with its full wage scale committee and schedule a ratification vote, and USMX members can ratify the terms of the final contract.
“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 modernising east and Gulf coast 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.”
The two parties said that details of the new tentative agreement will not be released to allow members of the two associations to review and approve the final document.
In the past, industrial action at US ports has resulted in modal shift to air as shippers have looked to avoid port logjams.
The agreement comes as a temporary contract between the two agreed in October was due to expire on January 15, sparking concerns of further industrial action.
Ahead of the temporary agreement being reached, port workers launched three days of strike action.
The logjams created by the three days of strike action that occurred in October were thought to have taken a few weeks to clear.
It is estimated that for every day a port is closed, it will take around five days for supply chains to return to normal.
There had been an expectation that prolonged strike action would result in some modal shift to air as companies looked to transport urgently needed goods into the country.
