The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) announced a tentative six-year contract agreement on Wednesday, avoiding potential strikes that could have disrupted U.S. supply chains and impacted the economy.
The deal resolves the contentious issue of automation, which had stalled negotiations. In a joint statement, the ILA and USMX described the agreement as a “win-win,” emphasizing its focus on job protection and the introduction of technologies designed to modernize East and Gulf Coast ports. These advancements aim to enhance safety, efficiency, and capacity, ensuring stronger supply chains.
While the exact terms of the agreement were not disclosed, the parties agreed to operate under the current contract until ratification. Talks had been extended to January 15 to address automation concerns. The resolution comes after a three-day ILA strike in October caused shipping price surges and backlogs at 36 ports, ultimately leading to a 62% wage increase over six years.
The ports, spanning from Maine to Texas, include major operators like APM (owned by Maersk), COSCO Shipping, and MSC. The National Retail Federation (NRF), representing companies like Walmart and Target, welcomed the deal, citing its potential to stabilize ocean shipping and enable critical port modernization.
“This agreement ensures growth, efficiency, and resilience in our nation’s supply chain,” said Jonathan Gold, NRF’s vice president of supply chain and customs policy.
The resolution is expected to secure U.S. container imports at East and Gulf Coast ports, which account for over half of the nation’s total.
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