ILA and USMX enter into six-year contract agreement to ensure safety

The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have reached a tentative six-year prime contract, averting a potential supply chain crisis at Eastern and Gulf Coast ports. The deal, finalized just days before a crucial Jan. 15 deadline, ensures stability for an industry vital to the U.S. economy.

Also read: Strike fears, tariff plans drive early import surge at U.S. ports

The breakthrough comes after months of tension, including a three-day strike in October that ended with a temporary contract extension and an agreement on a pay rise. However, the divisive issue of port automation remains unresolved to this day.

In a joint statement, the two sides emphasized the contract’s dual focus on safeguarding jobs and embracing modernization. “This agreement protects current jobs at ILA and establishes a framework to implement technologies that will create additional jobs while modernizing the Eastern and Gulf Coast ports. These measures make operations safer and more efficient, and be ready to meet growing demand,” the statement read.

The agreement averts a port crisis in the final days of the Biden administration and as President-elect Donald Trump prepares for his inauguration on January 20, 2025. Trump, an outspoken opponent of port automation, has historically supported the ILA, which represents about 45,000 longshoremen. He argued that the cost savings from automation do not justify its impact on U.S. jobs.

The USMX, which includes foreign container carriers, direct employers and port associations operating on the Eastern and Gulf Coast, faces increasing scrutiny amid changes in shipping patterns. Recent data highlighted the disruption caused by labor uncertainty, with West Coast port volumes in November 10.1% above the 52-month average, while East Coast and Gulf Coast ports were down 3.4%.

Industry stakeholders, including the National Retail Federation, expect U.S. container imports to continue growing due to concerns about disruption and the incoming administration’s proposed tariff increases.

While the specific terms of the agreement remain confidential, pending approval by ILA members and USMX stakeholders, early reactions have seen the deal as a major win. By balancing modernization with job protection, the contract is expected to strengthen supply chains, benefiting consumers, businesses and the wider economy.