East and Gulf Coast Ports Resume Operations Under Tentative Agreement

We’re sending out a special update since we have some great news. The dockworkers at the East and Gulf Coast ports have reached a tentative agreement according to a joint statement of the ILA and USMX issued late yesterday.

Let’s take a quick look at this week’s events.

On Tuesday, the ILA began a strike at midnight and effectively shut down many East and Gulf Coast ports. That led to approximately 80 ships at anchor, waiting to enter the ports, with many more ships headed their way.

The length of the strike was a major concern, and many analysts we’re predicting 1-3 weeks. If you heard or read the comments from the head of the ILA, Harold Daggett, you could understand why there were concerns that this strike could last even longer.

Thankfully, a three-month contract extension is bringing the ports back into operation.

Here’s what you need to know:

• The dockworkers returning to work will be getting a 62% increase over the next six years of the contract.
  
  
• EXTREMELY IMPORTANT! THE CONTRACT ISSUES ARE NOT YET SETTLED! SHIPPERS ARE NOT OUT OF THE WOODS YET! The dock workers have agreed to go back to work and rely on the ILA and the USMX to hammer out the extremely important Work Rules that include some critical issues that basically separated the parties. At the top of that list is the use of automation.
  
  
• The new contact needs to be completed and signed by January 15, 2025 or there is the threat of a new strike. Neither party (the ILA or USMX) has stated what will occur if they still don’t have a contract by January 15, 2025.

We want to emphasize, there are a lot of moving parts with respect to the East Coast Ports. If you want to better understand these moving parts, we have an outstanding document that summarized and clarified the key points and issues remaining in the ILA - USMX negotiations. Let me know if you would like a copy of this document.

We’ll keep watching this situation. For now, we’re going to share more information about this situation during a new webinar on Thursday October 10 at Noon Central and encourage you to sign up, and invite your team to join.

BY MIKE REGAN, CO-FOUNDER OF TRANZACT

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