The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have reached a tentative agreement on all items for a new six-year contract. The agreement concluded late Wednesday evening, successfully averting a potential strike ahead of the looming January 15 deadline that could have caused widespread economic disruptions.

The two sides agreed to continue to operate under the current contract until the union can meet with its full Wage Scale Committee and the USMX members can ratify a new contract.

This resolution follows months of contentious negotiations. In October, the two sides clashed over issues of automation at East and Gulf Coast ports, resulting in a brief but impactful strike. The disruption had strong implications across the global economy, prompting the Biden administration to intervene and broker an extension of the existing contract to facilitate continued discussions.

Details of the tentative agreement remain confidential, as the parties prioritize transparency with their respective members before making public disclosures.

“This agreement protects current ILA 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 two sides said in a joint statement.

Worldwide Logistics Group, a leading global logistics provider, is pleased to inform its customers that these developments will ensure continued fluidity in the movement of goods.

“Our team has been closely monitoring the situation and communicating to our customers ways to mitigate the contentious period,” said Tom Peacock, Worldwide Logistics Group President. “We are relieved that this agreement mitigates any potential disruptions to our clients’ operations.”

As the ILA and USMX finalize the details of the new contract, Worldwide Logistics Group will continue to prioritize clear and timely communication with its customers. Please contact us with any questions regarding the agreement.