Industry News

East Coast/Gulf Workers and Ports Agree to 6-Year Contract

Jan. 15, 2025
By: Chaney A. Finn


Crisis has been averted, at least for six years this time, as the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) tentatively agreed to a six-year master labor contract. In a joint statement, the two sides announced that the agreement has to undergo ratification, but will prevent any work stoppage ahead of the January 15th expiration date of the current contract. Final details of the agreement will be released once approved by ILA members, however, both parties agreed "on all items."

As way of background, the ILA is the largest union of maritime workers in North America, representing upwards of 85,000 longshoremen on the Atlantic and Gulf Coasts, Great Lakes, major U.S. rivers, Puerto Rico and Eastern Canada, and the Bahamas. USMX is an alliance of container carriers, direct employers, and port associations serving the East and Gulf Coast ports of the U.S. The current contract was extended to January 15th after having expired on September 30th, resulting in a three-day strike before reaching an agreement on pay but still unaligned on automation.

Work stoppage at any major U.S. port, let alone at several ports simultaneously, pose significant economic and national security ramifications. Theoretically, shipping volumes would shift to other ports that would remain operational, given increased costs and extended lead times associated with rerouting. However, we have noted historic congestion at other U.S. ports in a series of disruptions that tie up capacity of equipment necessary to facilitate the transport of cargo, impacting global supply chains.

Should you have any questions regarding international trade compliance, do not hesitate to contact any attorney at Barnes, Richardson & Colburn, LLP.