Navigating the Potential ILA Work Stoppage: What Shippers Need to Know

The Latest on ILA Contract Negotiations

As of January 8, 2025, the International Longshoremen's Association (ILA) and United States Maritime Alliance (USMX) have reached a tentative agreement for a new six-year master contract, successfully averting a strike. This comes just one week before the parties' existing contract extension was set to expire on January 15.

In a joint statement, the ILA and USMX 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. This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace."

More details on the agreement will be released after ILA and USMX members approve the final document. This tentative agreement brings relief to shippers who have been closely monitoring the negotiations and preparing contingency plans for a potential work stoppage.

Key Issues in the Negotiations

The negotiations between the ILA and USMX have centered around several critical issues:

• Wages: The ILA had been seeking significant wage increases.
• Automation: The union strongly opposed port automation, viewing it as a threat to jobs.
• Healthcare and retirement benefits
• Port modernization and technology implementation

The tentative agreement appears to have found a balance between these competing interests, though full details are yet to be released.

Impact on Supply Chains

While a strike has been averted, the prolonged negotiations and uncertainty have already had some impact on supply chains:

• Some shippers diverted cargo to West Coast ports as a precautionary measure.
• Carriers implemented contingency plans, including potential surcharges and route changes.
• Ports extended operating hours and implemented special procedures in preparation for a potential work stoppage.

With an agreement now in place, we expect operations at East and Gulf Coast ports to continue smoothly. However, it may take some time for any diverted cargo flows to normalize.

How FreightAmigo Can Help

At FreightAmigo, we understand the challenges that shippers face during times of supply chain uncertainty. Our Digital Logistics Platform is designed to help freight forwarders and shippers navigate complex logistics situations:

• Real-time visibility: Our platform provides up-to-date information on shipment status, helping you stay informed of any potential delays or disruptions.
• Flexible routing options: We offer a wide range of routing options, allowing you to quickly adapt your shipping strategy if needed.
• Data-driven insights: Our analytics tools can help you assess the impact of supply chain events on your operations and make informed decisions.
• Expert support: Our team of logistics professionals is always available to provide guidance and support in navigating complex shipping situations.

As the logistics landscape continues to evolve, we remain committed to providing innovative Digital Logistics Solutions that help our clients stay agile and resilient in the face of challenges.

Looking Ahead

While the tentative agreement between the ILA and USMX is certainly good news for the industry, it's important for shippers to remain vigilant and maintain flexible supply chain strategies. The global logistics landscape continues to face various challenges, from geopolitical tensions to evolving trade policies.

We at FreightAmigo will continue to monitor the situation closely and provide updates as more details of the agreement become available. Our Digital Platform is ready to help you navigate whatever challenges may arise in the ever-changing world of global logistics.