On Thursday evening, the ILA and USMX announced a contract extension until January 15, 2025. This extension has temporarily ended the three-day strike that had shutdown East and Gulf Coast port operations. An agreement on wage increases paved the way for this extension to occur.
All ports & terminals are returning to operation on Friday and will begin the process of working through the backlog of vessels that had anchored outside ports waiting for a resolution.
It is unclear if all vessels that were routed away from original port destinations—with intentions to discharge containers in other countries—will be re-routed back to their primary destination. These matters should be reviewed on a case-by-case basis.
There has been a build up of over 50 vessels outside of East and Gulf Coast ports, so recovery will likely be measured in weeks. Delays to cargo should continue to be expected while vessels are processed.
The ILA and USMX now have until January 15, 2025, to work through the remaining issues regarding the Master Contract. The hope is that more time will allow matters to be settled, now that pay increases have been secured. Mohawk Global will monitor the continued negotiations and provide updates, as necessary.
By Chris Lindstrand, Vice President of International Transportation