Temporary Deal Ends Longshoremen's Strike, Ports to Reopen

The strike involving 45,000 members of the International Longshoremen’s Association (ILA), which began on October 1, has come to a close following a temporary agreement with the United States Maritime Alliance (USMX).

Though the strike lasted only until October 3, around 45 container ships remain waiting to unload at 36 ports that were shut down during the strike. The disruption had the potential to spike prices, especially with Hurricane Helene hitting the Southeastern U.S. around the same time, further jeopardizing the supply of essential goods like food and medicine. In response, the Biden administration pushed for a swift resolution between the ILA and USMX.

The new temporary agreement, extending the master contract until January 15, 2025, includes a compromise between the two sides. The ILA had sought a 77% wage increase, while the USMX offered 50%. Both parties settled on a 62% raise over six years.

While workers are now returning to their jobs, some major issues remain unresolved, particularly around the automation of ports, which was not addressed in the current agreement.

Despite this, the Biden administration, along with the National Association of Manufacturers and the National Retail Federation, praised the ILA and USMX for reaching an agreement, preventing further disruption to the economy and supply chains.