US EAST COAST PORTS AVOID NEW DOCKWORKERS STRIKE
This week, the International Longshoreman’s Association (ILA) representing dockworkers and the employers’ association United States Maritime Alliance (USMX) reached a tentative agreement on a new six-year master contract, averting a potential dockworkers’ strike in US East Coast Ports from 15 January.
The agreement follows previous workers’ actions in October 2024, where around 36 ports from New Jersey to Puerto Rico including five of the ten busiest ports in North America, were paralysed for three days, resulting in port congestion and supply chain disruptions. Following the strike, ILA and USMX reached a previous tentative agreement subject to agreement on other outstanding issues – in particular automation and semi-automation - by 15 January.
The agreement, if ratified, will also avert higher freight rates. Investment bank Bernstein said to the Loadstar: “The potential strike was one of the most important forces that would have seen freight rates rise in the early part of this year, as it would have meant an effective supply reduction of container capacity, with ships waiting, unproductive, for a berth.” Meanwhile, many shipping lines have already announced strike-related surcharges, but some have widened the scope, indicating that they could stay in place. Analyst Lars Jensen noted that “this clear discrepancy serves to undermine whatever credence there might be in the reasons provided for such surcharges,”
CLECAT welcomes the labour agreement reached between USMX and the International Longshoremen's Association (ILA), preventing further strikes in critical U.S. ports along the East and South coasts. These ports, handling over half of U.S. imports, are essential for global supply chains, and avoiding disruptions is a positive development for international trade. While automation is a sensitive topic in labour discussions, European ports have demonstrated that advanced automation is essential for competitiveness and efficiency. A similar transition is necessary for U.S. ports to strengthen their role in global trade.
Source: The Loadstar