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

Shippers using the U.S. East and Gulf Coast ports will remember that the strike of October 1-3 ended when the United States Maritime Alliance (USMX), which represents the employers, agreed to a 62% wage increase and a short-term contract extension which expires on January 15, 2025. The key remaining issues deal with the increased use of automation and technology. On December 6, more than 265 trade organizations joined in a letter calling for both the International Longshoremen’s Association (ILA) and the USMX to return to the bargaining table, with the goal of reaching a new labor contract before the new January 15thcontract expiration date.

“It is imperative for the parties to resume negotiations and remain at the table until a new contract is reached,” the trade organizations said.

The ILA and USMX on Nov. 12 resumed contract negotiations, but the ILA walked away from the bargaining table after a day and a half over the issue of automation and technology.

“It is critical that our ports and terminals have the ability to modernize their systems and processes in order to remain globally competitive and be able to handle the continuing rise of trade volumes, both imports and exports, through our ports,” the trade organizations told the ILA and USMX leadership. “Modernization can only happen through true partnership between labor and management, as well as the other supply chain stakeholders that rely on these ports.”

We will continue to monitor this situation and provide updates when available.

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