Article by: Rick Walker, Vice President, TradeInsights, LCB/CCS

The International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) announced on Wednesday night that they have reached a tentative agreement on all items for a new six-year Master Contract.

The two sides agreed to continue to operate under the current contract until the union can meet with its full Wage Scale Committee and schedule a ratification vote, and USMX members can ratify the terms of the final contract.

“We are pleased to announce that ILA and USMX have reached a tentative agreement on a new six-year ILA-USMX Master Contract, subject to ratification, thus averting any work stoppage on January 15, 2025,” the two sides said in a joint statement. “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coast ports – making them safer and more efficient and creating the capacity they need to keep our supply chains strong.”

“This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace,” the ILA and USMX said.

The National Retail Federation, which represents major customers like Walmart and Target, said the agreement should bring certainty back to ocean shipping by reducing the risk of disruptions at East and Gulf Coast ports that handle more than half of U.S. container imports.

“The agreement will also pave the way for much-needed modernization efforts, which are essential for future growth at these ports and the overall resiliency of our nation’s supply chain,” said Jonathan Gold, NRF’s vice president of supply chain and customs policy.

Details of the new tentative agreement will not be released to allow ILA rank-and-file-members and USMX members to review and approve the final document.

We will continue to monitor this and issue updates accordingly.

Please contact your V. Alexander account team, or you may also contact our Trade Compliance team at tradeinsights@valexander.com with any questions.