Sara Lunsford UPDATED 1/9/2025 – ILA and USMX Reach Tentative Agreement!
The ILA and USMX have reached a tentative six-year master contract agreement, averting a major East and Gulf coast port strike. This development ensures continued operations and job protections while advancing port modernization. However, some shipping lines already announced strike-related surcharges may remain in place despite the agreement.
“This agreement signals a promising balance between economic progress and production, fostering stability for the future of global supply chains,” said Steve Panzarella, President of Global CFS.
The looming January 15 deadline for the International Longshoremen’s Association (ILA) and United States Maritime Employers (USMX) contract negotiations is fast approaching, and the stakes couldn’t be higher. With automation in port operations as the central issue, the possibility of a strike along the East and Gulf Coasts grows with each passing day.
Negotiations resumed on January 7, but progress remains stalled. Employers argue that automation boosts efficiency and global competitiveness, while the ILA calls for preserving jobs through human oversight of new technologies. This divide threatens to delay a resolution and disrupt operations at major ports like New York/New Jersey and Savannah.
Industry experts warn that even a short strike could result in extended recovery periods, with backlogs of 25,000 to 30,000 TEUs at major ports. These delays would ripple across the inland transportation network, particularly at ports with significant rail dependencies. For every day of disruption, weeks of recovery may follow, creating logistical headaches for importers and exporters.
At this point, there’s little to be done for ocean cargo to counteract any coming issues. Maintaining clear communication, planning ahead for contingencies and staying informed about the ongoing negotiations will be best as we try to gauge when the stalemate might break. With the right planning, your supply chain can remain resilient, even during a strike.
The automation debate reflects the evolving logistics landscape. While these technological advancements promise long-term benefits, the immediate need is preparation. Global CFS supports your operations through expert freight handling, customs clearance, and proactive planning.
At Global CFS, we know how important accurate and timely information is to the logistics industry. While we can’t predict how this situation will unfold, we will keep track of the talks and update this space as more information becomes available. We encourage you to watch this space or contact your Global CFS representative to learn more about how we can help you prepare for the disruption before it strikes.
