The union representing 45,000 dockworkers across the U.S. East and Gulf Coasts announced on Wednesday that it had reached a tentative six-year contract agreement with employers, averting further strikes that could have disrupted supply chains and impacted the U.S. economy.
The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) described the agreement as a “win-win” in a joint statement. A key breakthrough involved resolving the contentious issue of automation.
“This agreement safeguards current ILA jobs while establishing a framework for implementing technologies that will create additional employment opportunities, modernize East and Gulf Coast ports, enhance safety, and improve efficiency. It will also ensure the capacity needed to maintain strong supply chains,” the groups said.
The terms of the agreement have not been disclosed. Both parties will continue operating under the current contract until the new deal is ratified.
Negotiations, extended until January 15 to finalize details on automation, had raised concerns among shipping industry executives and analysts about the potential for a second ILA strike. Such a strike could have occurred just days before President-elect Donald Trump’s January 20 inauguration.
A previous three-day ILA strike in October led to increased shipping costs and significant cargo backlogs at 36 affected ports. Operations resumed after employers agreed to a 62% wage increase over six years.
Employers at ports spanning from Maine to Texas include terminal operators such as APM, owned by Maersk, along with the U.S. subsidiaries of major carriers like China’s COSCO Shipping and Switzerland’s MSC.
The National Retail Federation (NRF), which represents major companies including Walmart and Target, welcomed the agreement. It emphasized that the deal would reduce the risk of disruptions at ports handling over half of U.S. container imports.
“This agreement also sets the stage for critical modernization efforts, essential for future growth at these ports and for the overall resilience of our nation’s supply chain,” said Jonathan Gold, NRF’s vice president of supply chain and customs policy.
