Written and Published by BMT Foods, January 14, 2025
On Wednesday evening, the United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) union released a joint statement that they had reached an agreement to a six-year deal. These negotiations, which have been ongoing since prior to the 3-day strike in October, were pivotal in avoiding a second strike that was set to start on January 16th. The ILA consists of 25,000 members at over three dozen ports stretching from Maine to Texas. Managing to reach an agreement prior to the strike was crucial in maintaining full capacity U.S. East Coast import activity. Going into last week’s negotiations, industry players were uncertain that a deal would be reached. Out of an abundance of caution, many importers elected to shift loads to the Port of Los Angeles and Long Beach after encountering disruptions during the 72-hour strike in October. As a result, we are expecting diminished capacity combined with higher prices for truckloads traveling east from the U.S. West Coast as activities return to normal.
Automation was a major sticking point in contract negotiations, but a deal was reached in this area.
After addressing concerns of pay scaling back in October, the main sticking point for the ILA was the wording in the new contract surrounding automation. Both union officials for the ILA and members voiced their concerns regarding diminished labor needs as a result of increased automation. In an effort to appease all parties, USMX elected to isolate only specific areas of need for automation while also guaranteeing a fixed number of jobs despite automation of these processes. Finding common ground between the two parties was integral in ensuring continuation of port operations while also addressing manual processes to promote efficiency at the pier.
With the news of the latest agreement between the USMX and ILA, we expect smoother shipping operations.
With much uncertainty in the world of logistics and shipping over the past year, the USMX and ILA’s agreement is likely to mean imports of food and beverage products, along with other products, will move easier into the U.S. without the need for re-routing and other disruptions that increase delays. Had a second strike happened, it may have been prolonged and further disrupted shipping operations, delaying deliveries. We welcome the news of the agreement between the USMX and ILA, and will keep you posted on any further developments.
