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…
Automation debate heats up: ILA and USMX about to clash
Tensions between the International Longshoremen's Association (ILA) and the United States Maritime Union (USMX) have escalated over port automation as the January 15, 2025 deadline approaches, a dispute that could roil the Eastern and Gulf Coasts operations of ports, some of the busiest in the United States Also Read: USMX, ILA reach labor agreement, port operations resume A brewing labor crisis The current impasse was temporarily resolved with pay rises and contract extensions following a three-day strike in October. Negotiations broke down again last month when the ILA pulled out of the talks, citing concerns about the impact of automation on job security and national security. ILA Executive Vice President Dennis A. Daggett recently highlighted the union's opposition to semi-automatic rail-mounted gantry cranes (RMG) in a Facebook post. Daggett believes that although RMG is promoted as "semi-automated", it operates with minimal human input, which poses a threat to employment. “It’s not about safety or productivity, it’s about job losses,” he…
Automation remains a focus for ILA
During the first week of October, the International Longshoremen's Association (ILA) strike inevitably dominated national news coverage. Doomsday scenarios, people hoarding toilet paper and union president Harold Daggett's 7,136-square-foot New Jersey home, complete with a brick pizza oven and a sleek Bentley in the garage, are all socializing There was a stir in the media. At the heart of the ILA's concerns, however, is automation and its eventual impact on union jobs. Also read: Managing supply chains through disruption: ILA strikes on Gulf and East Coast in 2024 Like any other economic sector, port management is driven by the pursuit of profit and seeks to maximize productivity. Port automation has been an ongoing phenomenon for years, but union resistance has been particularly pronounced in the United States. "Smart Port" integrates digitalization, artificial intelligence, big data, blockchain, 5G and other technologies. Although the United States is the tech capital of the world, the country has long lagged behind when it comes…
USMX and ILA reach labor agreement, port operations resume
The American Association of Port Authorities (AAPA) celebrates the signing of a new agreement between the United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) that allows Eastern and Gulf Coast ports to quickly resume operations. Also read: Managing supply chains through disruption: ILA strikes on Gulf and East Coast in 2024 AAPA President and CEO Cary S. Davis emphasized the importance of collaboration between management and labor to keep the nation's supply chains functioning. While a full return to operations may take some time, Davis expressed gratitude for the successful negotiations and acknowledged the resiliency of the port system. Before the strike, AAPA sent a letter to President Biden warning of the possible economic consequences of a long-running labor dispute.
D&D may ‘freeze the clock’ during ILA strike
As the International Longshoremen’s Association (ILA) strike began yesterday morning, our team learned from a source with knowledge of operations at the Port of New York and New Jersey (NYNJ) that NYNJ terminals have decided to “freeze the clock” one by one. ” regarding detention and demurrage (D&D) charges during the ILA strike. If these reports are accurate and NYNJ exerts influence in the seaport community, other ports may follow suit, especially as ocean carriers lobby for major R&D charges decision makers. While the suspension of D&D charges may be a welcome development for shippers, there is no guarantee that both importers and exporters will benefit from it. Terminals typically charge fees directly to ocean carriers, and these fees are usually passed on to shippers; however, ocean carriers may also charge importers/exporters higher D&D fees than the terminal charges. D&D charges have come under increased scrutiny since the enactment of the Ocean Shipping Reform Act of 2022 (OSRA), which shifted…
CH Robinson: How shippers can prepare for a potential ILA
CH Robinson’s North America Ocean Director Mia Ginter takes an in-depth look at the upcoming ILA East Coast and Gulf Coast port strikes and how shippers can prepare now. While there is still hope that a strike can be avoided, labor issues in Canada and ongoing ocean disruptions could exacerbate the impact of a strike for shippers that don’t have a contingency plan in place. Here’s an overview of the potential strike and what shippers can do now to strategically prepare for it: See also: East Coast and Gulf Coast ports face strike threats as ILO suspends labor talks As master contract negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Union (USMX) continue to advance, the likelihood of a strike at ports along the U.S. East and Gulf Coast is growing. With less than two months until the current contract expires and a potential strike begins, shippers should begin preparing now to avoid major disruptions. The…
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