The East and Gulf Coast dockworkers strike, which threatened to disrupt the U.S. economy, has been resolved – for now.
On 3 October, the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) issued a joint statement that they reached a tentative agreement on wages, and agreed to extend the current union contract until mid-January 2025, allowing them time to return to negotiations on all other outstanding points.
“Effective immediately all current job actions will cease, and all work covered by the master contract will resume," the statement said.
It was a fast resolution to a strike which earlier in the week seemed poised to upend national politics and which J.P. Morgan estimated could cost the country between USD 3.8 billion and USD 4.5 billion (EUR 3.4 billion and EUR 4.1 billion) a day.
Analysis from FreightWaves, the New York Times, and the Washington Post suggested that the speedy conclusion was due at least in part to the Biden administration’s willingness to put pressure on foreign carriers, with whom the administration met via zoom early Thursday.
The need to find common ground was “framed … as a patriotic duty to expedite aid” to those suffering in the fallout from Hurricane Helene, the New York Times said. Acting Labor Secretary Julie Su also flew to New Jersey on 3 October to discuss the issue with union leaders.
After the tentative agreement, Biden said the goal is to ensure a longer-lasting contract.
“We've been working hard on it. With the grace of God it's going to hold," he said.
Another factor which likely hastened the strike’s resolution was pressure from trade unions, almost 300 of whom sent a joint coalition letter to the Biden Administration on Wednesday urging it to end the strike.
National Association of Wholesale-Distributors (NAW) Chief Communications Officer Meghan Cieslak said the strike posed higher risks to industries which rely on perishable goods, like seafood.
"Prolonged delays at sea can have a devastating impact on perishable shipments, including any seafood on container ships," Cieslak said. "The longer ships are held up, the greater the risk of spoilage, which not only results in lost revenue for businesses but also disrupts supply chains and limits availability for consumers.”
As of Thursday night seafood importers were not reporting shipping disruptions, however. On Friday afternoon a number of affected ports issued statements about their return to work plans; most expected to be fully operational again by the end of the weekend at the latest.
The timing of Hurricane Helene also added to the pressure for a quick resolution. The storm made landfall a few days before the ILA contract was due to expire on 30 September, and left portions of the East Coast in dire need of aid supplies.
The strike has brought prominence to a number of issues in the shipping industry, including the U.S. economy’s reliance on ports and the growing use of automation to monitor cargo. The use of automation remains one of the key points of disagreement between the ILA and the USMX, who are also continuing to negotiate on retirement benefits and protections for the union’s newest members.
