Threat of January US East coast port strike lifted

The looming threat of a disruptive port strike across 40 U.S. East and Gulf Coast ports has been lifted after the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) announced a provisional six-year master contract agreement on 8 January 2025.

The deal averted a strike scheduled for 16 January but still requires ratification by the union’s wage-scale committees, which may take till the summer, leaving the future uncertain.

Key Moments in the Dispute
The roots of the dispute trace back to the expiration of the ILA’s previous contract on 30 September 2024. Tensions escalated when a three-day strike in October disrupted operations at over 40 ports. While that strike was resolved with a significant wage increase, automation remained a contentious issue.

After months of stalled discussions, negotiations resumed on 7 January 2025. The resulting agreement permits limited semi-automation, such as the introduction of rail-mounted gantry cranes, but guarantees union jobs tied to any new technologies. ILA President Harold Daggett hailed the agreement as a balanced solution, stating, “This deal protects the livelihoods of our members while allowing ports to modernise safely and responsibly.”

A pivotal moment came on 20 December 2024, when President-elect Donald Trump met with Daggett and other union leaders in Florida. Trump publicly supported the union’s anti-automation stance, declaring, “Automation is not the answer when it comes at the expense of American jobs.” His intervention added significant pressure on carriers to compromise, paving the way for the current deal.

Preparedness amid uncertainty
PSP Worldwide anticipated potential disruptions and activated a series of contingency measures ahead of the strike deadline. These include diversion via West Coast ports, Canadian trans-loading, and expanded air freight options.

Despite the agreement, carriers have not yet lifted surcharges such as “Port Congestion” and “Work Interruption” fees. PSP Worldwide is advocating for the immediate removal of these surcharges, noting they are no longer justified.

The Road Ahead
While the agreement is a significant step forward, its ratification—expected to stretch into mid-2025—could reignite uncertainty. PSP Worldwide advises businesses to remain flexible, maintain contingency plans, and monitor developments closely.

PSP Worldwide’s Commitment
As the situation unfolds, PSP Worldwide continues to provide expert guidance, helping clients navigate the complexities of global trade. From risk mitigation strategies to supply chain optimisation, we ensure our clients stay resilient in the face of uncertainty.

EMAIL our managing director, Colin Redman, today to learn how we can safeguard your supply chain and help your business thrive.