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| December 18, 2024 |
ILA-USMX Contract Negotiation Update |
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Dear Valued Customers,
As part of our commitment to keeping you informed, we want to provide you with an important market update regarding the ILA-USMX contract negotiation. These developments may have implications for your shipments. Please read the details below for more information.
ILA-USMX Contract Negotiation Update
The master contract between the International Longshoreman’s Association (ILA) and the United States Maritime Alliance (USMX) expired on September 30th 2024. Ports affected are Baltimore MD, Boston MA, Charleston SC, Miami FL, New York NY, Norfolk VA, Portsmouth VA, Savannah GA, Jacksonville FL, Port Everglades FL, Philadelphia PA, Portland ME, Wilmington NC, Houston TX, New Orleans LA, Mobile AL, Freeport TX, and Tampa FL.
After a three day work stoppage, the Biden administration reached out directly to the ocean carrier CEOs in order to secure a 62% pay increase for the ILA over the life of the next six year contract. Based on this concession the two sides agreed to extend the previous contract to January 15th 2025 while negotiations for the remainder of the master contract items would continue.
On November 13th the ILA and USMX broke off negotiations, with each side refusing to give ground on the issue of automation at the port terminals.
Following a quiet three week period, on December 12th President-elect Trump announced support for the ILA on the automation issue. In response the USMX has taken a more aggressive stance in the media on automation at US port terminals, citing the need to automate in order to improve worker safety, boost port efficiency, increase port capacity, and strengthen the overall supply chain.
Given these new developments the general consensus is that a work stoppage on January 16th is almost certain, and the possibility of a strike lasting multiple weeks is within the range of possibilities.
Thank you,
US Group Consolidator
Consolidator International
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