Yesterday, a new six-year ILA-USMX master contract was worked out with only a week to spare. The current contract was set to expire January 15th. This is good news as the agreement will help ensure operations continue without any work stoppages across East and Gulf Coast ports. The major sticking points were pay and automation. Full details of the new contract have yet to be announced. In the meantime, port terminals can operate under the current contract until ratification votes are complete.
The Question of Automation
Last April, I highlighted the possibility of a strike involving the 45,000 dockworkers from Maine to Texas. They missed their first target date to reach an agreement by mid-May. Union workers went on a three-day strike in October which led to a significant 62% wage increase. However, negotiations remained gridlocked over automation.
USMX pushed for technologies like semi-automated rail-mounted gantry cranes (RMGs). Terminal and vessel operators emphasized the importance of RMG’s for improved port productivity. The ILA, resisted, citing concerns about automation’s potential to reduce job availability.
While full details have yet to be disclosed, both sides are claiming key victories. Terminal operators and ocean carriers will move forward with implementing RMGs to enhance container-handling efficiency. At the same time, the union has secured new jobs for the operation of this equipment. These positions typically rank among the highest-paying for port workers.
Reaching An Agreement
Daggett acknowledged Trump’s role in helping secure the contract agreement with the USMX:
“President Trump clearly demonstrated his unwavering support for our ILA union and longshore workers with his statement ‘heard round the world’ backing our position to protect American longshore jobs against the ravages of automated terminals,” stated Daggett. “President Trump’s bold stance helped prevent a second coast-wide strike at ports from Maine to Texas that would have occurred on January 15, 2025, if a tentative agreement was not reached.”
In a joint statement, the ILA and USMX shared the following:
In Conclusion
What we continue to learn from these disruptions is to always be ready to explore alternative shipping options. The ILA strike in October only lasted three days but had an operational impact lasting more than a month. With the potential of a second strike, we all had the chance to further explore backup options. Working with a trusted partner is essential to help analyze the use of different shipping ports, transloading facilities, or air freight for time sensitive cargo.