ILA and USMX Reach Tentative Agreement to End East and Gulf Coast Port Strike

On Oct. 3, 2024, the International Longshoremen’s Association (ILA) and the United States Maritime Alliance, Ltd. (USMX) representing ocean carriers and marine terminal operators, announced that they have reached a tentative agreement to suspend the East and Gulf Coast port strikes until Jan. 15, 2025.

According to sources familiar with the negotiations, the tentative agreement includes a wage hike of 62% over the life of the 6-year contract. The ILA had been seeking a 77% raise while the USMX had previously offered a nearly 50% raise. While a compromise had been reached regarding wages, other issues including automation and benefits are still being addressed.

In a joint statement, the ILA and USMX said:

"The International Longshoremen’s Association and the United States Maritime Alliance, Ltd. have reached a tentative agreement on wages and have agreed to extend the Master Contract until January 15, 2025, to return to the bargaining table to negotiate all other outstanding issues. Effective immediately, all current job actions will cease, and all work covered by the Master Contract will resume."

The strike had far-reaching economic implications. As previously shared, the East and Gulf Coast ports account for 60% of the import and export containers through U.S. seaports. The resolution of the wage dispute brings temporary relief to businesses and consumers who were bracing for prolonged disruptions.

As the ports resume full operations, attention now turns to clearing the backlog of containers that built up during the strike. The recovery process will likely take time, as ports work to manage delayed shipments and restore normal operations.

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