TIA Joins Coalition to Urge ILA-USMX Labor Contract Negotiations Before 2025 Deadline
TIA has joined a coalition of approximately 200 organizations across various sectors – including manufactures, farmers, agribusinesses, wholesalers, retailers, restaurants, importers, exporters, distributors, transportation and logistics providers and other supply chain stakeholders – in urging the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) to resume negotiations and reach a new labor contract before the current extension expires on Jan. 15.
A central issue in these negotiations is the ongoing debate over port automation, with the looming deadline potentially disrupting some of the nation’s busiest shipping routes. As previously reported to TIA members, a three-day strike in October marked the end of a six-year labor agreement, which had been finalized in September 2018. That agreement, which covers approximately 14,500 U.S. East and Gulf Coast port workers, included a temporary contract extension through January 2025, along with wage increases.
According to The Conference Board, any delay or stoppage at the 36 East and Gulf Coast ports, responsible for handling 57% of U.S. container volume – would have significant consequences for the supply chain. These ports handle about $3.78 billion in international trade annually, including major cargo such as electronics and automobiles. A one-week strike could cost the economy $3.78 billion and raise consumer prices, potentially driving inflationary pressures that follow the pandemic’s temporary relief.
Given the strong ties between TIA’s membership and port operations, and the sensitivity to potential labor disruptions, TIA will continue to actively support efforts that ensure supply chain efficiency while advocating for fair and competitive conditions in the increasingly interconnected global supply chain.
