Labor stability in major East and Gulf Coasts ports
In a significant development for the maritime and logistics sectors, the International Longshoremen’s Association (ILA) has ratified a new six-year contract with the United States Maritime Alliance (USMX), ensuring labor stability across 36 major ports along the U.S. East and Gulf Coasts until 2030.
This agreement, effective from October 1, 2024, to September 30, 2030, includes a substantial 62% wage increase, elevating the hourly base rate for dockworkers from $39 to $63. The ratification follows a period of intense negotiations and a three-day strike in October 2024, the first coastwide strike in nearly five decades. The strike, which significantly disrupted operations at key ports such as New York-New Jersey, Houston, and Savannah, underscored the critical role of dockworkers in maintaining the nation’s supply chains.
Better working conditions for dockworkers
Beyond wage enhancements, the contract addresses pivotal issues concerning automation and job security. It accelerates wage progression for new hires, bolsters healthcare benefits, and increases retirement plan contributions. Notably, the agreement includes provisions that prevent the implementation of fully automated cranes, a move aimed at preserving jobs amidst technological advancements.
The formal signing of the contract is scheduled for March 11, 2025. This development relieves shippers and businesses reliant on these ports, mitigates uncertainties related to potential labor disputes, and ensures the continued flow of goods vital to the economy.
For companies like us, which depend on the seamless operation of these ports to import and export perishable goods, this agreement signifies a stable and predictable logistics environment. Foodcareplus is very active in the Transatlantic trade, managing flows of chocolate, confectionery, bakery products, and fresh produce. We welcome this news as it ensures continuity and efficiency in the logistics chain.
In addition to our expertise in ocean freight management, Foodcareplus is mainly involved in landside operations, assisting companies with delivering and distributing products throughout the U.S. Our service extension office in Florida, combined with our strong partnership with Sunrise Logistics, enables us to provide comprehensive logistics solutions beyond the port, ensuring that goods reach their final destinations efficiently and reliably.
With this new labor agreement, Foodcareplus remains committed to delivering best-in-class logistics services for our clients, optimizing supply chains, and ensuring smooth trade flows across the Atlantic.
