International Longshoremen’s Association and U.S. Maritime Alliance Reach Agreement, Alleviating Supply Chain Disruptions
The recent strike that had paralyzed operations at East Coast and Gulf Coast ports has come to an end as the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMA) reached a tentative agreement on wages. The deal also includes an extension of their existing contract through January 15, 2025, allowing both parties to negotiate further outstanding issues.
The strike, which began earlier this week, marked the first walkout by the ILA since 1977 and significantly affected operations at 14 ports. Approximately 50,000 of the ILA’s 85,000 members participated in the strike, causing considerable stress on the U.S. supply chain. With ports rendered inoperable, thousands of containers were misrouted to incorrect locations, and billions of dollars worth of goods remained anchored offshore, unable to reach their destinations.
In a joint statement, the ILA and USMA announced, “We 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.”
Before the agreement, the ILA was seeking a $5 per hour wage increase for each year of the proposed six-year contract. The strike had already begun to affect shipping costs and operations, pushing prices higher as supply chain disruptions intensified.
This tentative deal marks a crucial step toward restoring normalcy in port operations and alleviating the strain on the U.S. economy, which relies heavily on the timely movement of goods through these vital transportation hubs.
