The threat of an impending port strike in the US East & Gulf ports on January 15 has been averted after The International Longshoremen's Association (ILA) and United States Maritime Alliance (USMX) reached a tentative deal on January 8.

In a joint statement, the ILA and USMX, which represents employers of the East and Gulf Coast longshore industry – said the agreement was reached on "all items" for a new six-year Master Contract.

The recent update is a positive sign for the supply chain industry, which has been concerned since October about a potential coast-wide port strike from Maine to Texas over automation issues.

"We are pleased to announce that ILA and USMX have reached a tentative agreement on a new six-year ILA-USMX Master Contract, subject to ratification, thus averting any work stoppage on January 15, 2025," the two sides said in a joint statement.

"This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coasts ports – making them safer and more efficient and creating the capacity they need to keep our supply chains strong."

"This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace," both the ILA and USMX said.

The announcement noted that the two sides agreed to continue to operate under the current contract until the union can meet with its full Wage Scale Committee and schedule a ratification vote, and USMX members can ratify the terms of the final contract.

Meanwhile, details of the new tentative agreement will not be released to allow ILA rank-and-file-members and USMX members to review and approve the final document.

Separately, USMX chairman & CEO David F. Adam said the tentative deal was reached following "two days of intensive bargaining with the ILA."

USMX members then met to begin the formal review process to finalize the tentative Master Contract agreement.

"The agreement includes provisions that will increase wages, strengthen retirement and healthcare benefits, maintain current jurisdiction, and allow us to modernize our ports – making them safer and more efficient, and building the capacity we need to keep the American economy the global leader in trade," he said.

"The deal is a testament to the USMX and ILA's shared commitment and long history of prioritizing creating a stronger future for our industry and protecting and creating good-paying American jobs."

Adam also attributed the success of the talks to incoming U.S. President Donald Trump. "Thanks in large part to President Trump's leadership, this agreement reflects our joint commitment to supporting American workers and strengthening our ports so that American businesses can continue to thrive giving them access to markets around the world to sell their products and keep our economy strong."

On October 1, 2024,  around 45,000 members of the ILA launched its first coastwide strike since 1977. Union members set up picket lines at all the major ports on the Atlantic and Gulf Coasts. However, after three days, the ILA and the USMX were able to strike a temporary deal, immediately ending the work stoppage at some of North America's busiest ports.

The ILA and USMX have agreed on a 62% wage increase for dockworkers over a period of six years. However, this pay agreement is contingent upon both parties resolving other outstanding issues — especially those related to automation and semi-automation — by January 15 of this year. The ILA maintains the right to strike if an agreement is not reached.