International Longshoremen’s Association, United States Maritime Alliance Reach Tentative Agreement; Ports Resume Operation

All 45,000 dockworkers who went on strike Oct. 1 have resumed to their duties.

Blue Planet Studio Adobe Stock 460331017
Blue Planet Studio AdobeStock_460331017

The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have reached a tentative agreement on wages, extending the Master Contract until Jan. 15, 2025.

As a result, all 45,000 dockworkers who went on strike Oct. 1 have resumed to their duties.  

“Without the strong cooperation of management and labor, port authorities simply cannot move cargo, maintain a fluid supply chain, and keep our nation’s economy growing,” says Cary S. Davis, president and CEO, at American Association of Port Authorities (AAPA). “As it takes some time for operations to return to normal, we must be patient and are also reminded once again that our system is resilient and can withstand short and contained impediments. However, we are glad the strike has ended, and AAPA sincerely thanks the USMX and ILA for coming together and negotiating an agreement.”

While the extended contract through Jan. 15, 2025 allows time for further negotiation, key issues like port automation remain unresolved, says Eric Hoplin, president and CEO of the National Association of Wholesaler-Distributors (NAW). "This strike underscores a critical need for reform. No single union should have the power to cripple our economy. Our labor laws, written in a different era, should reflect today’s interconnected supply chain. Manufacturing, transportation, warehousing, and distribution are all essential to our national security, and our policies should recognize their vital role in sustaining the flow of goods and services.”

According to project44, this strike shut down 36 ports that make up around 50% of all imports and exports in the United States during ocean peak season. Some shippers estimate that for every one week of an ILA strike, it will take 4-6 weeks to fully recover and could cost the economy up to $5 billion per day. Just 3 days into the strike, it will likely take over a month to recover.

New York will likely see the highest number of anchored vessels as a result of the 40 vessels currently enroute to that port, but with over 100 vessels inbound to striking ports, congestion will be widespread, project44 data shows.

While many business and groups called for President Biden to intervene in the negotiations and force the two parties to come to an agreement through mediation efforts under the Taft-Harley Act, “given the election season, it remains unlikely that the government will intervene, and risk being seen as anti-union,” according to Everstream Analytics. “However, the administration also risks a loss in confidence from voters if the strike continues and damages the U.S. economy, the latter being a consistent a key voting issue in most U.S. elections.”    


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