The labor dispute between the United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) appears to be reaching a resolution, with dockworkers expected to resume operations as early as Friday, October 4, according to a communique from Scan Global Logistics.
This update follows an agreement between the ILA and USMX to extend their contract negotiations until January 15 while working towards a comprehensive six-year deal.
US President Joe Biden expressed optimism on Thursday, stating, “Today’s tentative agreement on a record wage and an extension of the collective bargaining process represents critical progress towards a strong contract.” He added, “By the grace of God and goodwill of neighbors, it’s going to hold.”
Daniel Cacciotti, global head of ocean freight at Scan Global, confirmed that the ILA, representing over 45,000 dockworkers, has agreed to pause strike actions until mid-January, allowing more time for negotiations without further disruptions.
The ports affected by the strike manage around 56% of containerized imports and 68% of containerized exports for the United States.
As of now, at least 50 containerships have been reported anchored offshore, unable to dock at any of the three dozen ports impacted by the strike.
According to Cacciotti, these vessels will begin docking in order of arrival, though the congestion is expected to continue through the end of the month.
Several carriers, including CMA CGM, Ocean Network Express, and HMM, have declared force majeure in light of the disruption.
Cacciotti noted, “This announcement does not outline specific plans for cargo in transit but affirms actions should cargo need to be redirected to alternative discharge locations.
We are coordinating with carriers to ensure affected cargo reaches its original destination.”
Cacciotti added, “We appreciate your patience and understanding and will maintain close communication with all clients.
For immediate concerns or more information, please contact your sales representative or any member of our ocean product team.”
