The International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) reached a tentative agreement on the afternoon of January 8 on all terms of a new six-year Master Agreement, diluting the possibility of a new port strike in the country beginning January 15.

In October 2024, the ILA shut down activities at U.S. Gulf Coast and East Coast port terminals from Maine to Texas for three days. The dockworkers' primary demand is against automation.

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

“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 avoiding any work stoppage on Jan. 15, 2025,” the two parties said.

“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.”

The entities stressed that “this is a win-win agreement that creates ILA jobs, supports U.S. consumers and businesses, and keeps the U.S. economy at the center of the global marketplace.”

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

Maersk's response

Several global shipping companies were planning to increase pricing and change operations due to the potential port disruptions. Logistics organization Maersk said there will be no changes to terms and conditions or application of port disruption surcharges in light of the tentative agreement.

The organization announced that the agreement, which awaits ratification, "ensures continued operations at major ports, safeguarding the stability of supply chains that handle nearly half of U.S. imports. Under the tentative deal, dockworkers will continue operating under the current contract until the new agreement is finalized."

Maersk extended its gratitude to both ILA ad USMX f0r reaching an agreement.