USMX and ILA Reach Tentative Agreement, Port Strike Ends as Operations Resume

04 Oct USMX and ILA Reach Tentative Agreement, Port Strike Ends as Operations Resume

After days of disruption, the United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) have reached a tentative agreement on wages, bringing the port strike to an end. The ports on the US East and Gulf coasts reopened this morning, with work resuming immediately.

The two parties, likely influenced by the White House, announced last night that they had agreed to a 62% wage increase for ILA members over six years. However, key issues surrounding automation remain unresolved and will continue to be a focal point in ongoing negotiations. The current master contract has been extended until January 15, five days before the new US president takes office.

As of this morning, approximately 50 containerships are anchored offshore, waiting to berth in the order they arrived. Savannah is experiencing the highest congestion, with 8,971 containers still in port, followed by New York with 3,901 containers and Houston with 2,401.

Meanwhile, in Montreal, the port has reopened after a 72-hour industrial action. The Maritime Employers’ Association will meet with the union today under mediation, hoping to reach a lasting agreement that ensures stability and restores cargo flow.

Logistics companies are working to clear backlogs, and congestion is expected to remain a challenge for the rest of the month. Several carriers that declared force majeure have yet to finalize plans for cargo in transit or en route, but they are monitoring developments closely. The goal is to ensure that all bookings are completed to their original destinations.

While the contract’s expiration date of January brings some uncertainty, the delay avoids further disruption during the busy pre-Christmas season, when shipping volumes are typically lower.

Some of the most affected companies have experienced significant delays with containers stuck in port for more than 10 days, while others are dealing with average dwell times exceeding 40 days. This highlights the serious impact of the strike on supply chains.



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