U.S. Ports Reopen After Dockworkers End Strike

The International Longshoremen’s Association (ILA) and the United States Maritime Alliance have reached a tentative agreement on wages and extended their existing master contract through January 15, 2025. This extension allows time for further negotiations on a new contract but also raises the possibility of renewed discussions or even a strike as the new deadline approaches.

The agreement effectively ends a strike that began earlier in the week, which had disrupted operations at East Coast and Gulf Coast ports, threatening the supply of fruits, automobiles, and other goods.

In a joint statement, the ILA and the United States Maritime Alliance announced, “We have reached a tentative agreement on wages and have agreed to extend the Master Contract until January 15, 2025, to return to the bargaining table to negotiate all other outstanding issues.”

During the strike, the U.S. supply chain was already feeling the impact, with thousands of containers misrouted and billions of dollars in goods stranded offshore due to port closures. Shipping costs began to rise as a result.

This strike marked the first action by the ILA since 1977 and impacted 14 different ports, with approximately 50,000 of the union's 85,000 members participating. ILA President Harold Daggett stated earlier in the week that the union was seeking a $5 per hour wage increase for each year of the proposed six-year contract.

Under the tentative agreement, wages for ILA members will increase by 61.5% over six years. However, negotiations regarding port automation are still ongoing, which means the potential for a strike could reemerge as the January deadline approaches.