The strike at East and Gulf Coast ports ended Thursday, with cargo operations at several ports expected to resume.
The International Longshoremen’s Association and United States Maritime Alliance announced the news in a joint statement Thursday night.
Per the statement, the two parties have agreed to a tentative deal on wages, and to extend their master contract until Jan. 15, 2025. Both parties also agreed to return to the bargaining table to negotiate all other outstanding issues.
The agreements put an end to a three-day strike that began Tuesday and shut down operations at several ports along the East and Gulf Coasts, after negotiations had stalled due to automation and wage concerns.
Both parties had attempted to prevent a strike by trading counteroffers in the hours leading up to disruption. But the union rejected USMX’s offer at the time, saying it “fell far short of what ILA rank-and-file members are demanding in wages and protections against automation.”
As the strike progressed, the Biden administration put pressure on USMX to offer a contract reflective of longshoremen's contributions, while making it clear the government would not intervene to stop the strike.
With a tentative deal on wages in place, cargo operations can now resume at union-operated ports. “Effective immediately, all current job actions will cease and all work covered by the Master Contract will resume,” the ILA and USMX said in a joint statement.
Some ports have already announced reopening plans for Friday.
Port Houston will reopen at 1 p.m. CT and offer extended gate hours on Saturday. Georgia Ports Authority to open its truck gates at 6 a.m. ET at Garden City Terminal and 8 a.m. ET at its Ocean Terminal. Meanwhile, North Carolina Ports said normal operations will resume at 8 a.m. ET.
Shipping groups were quick to applaud the deal. East and Gulf Coast ports handle approximately $100 million in beef and pork products a week, and meat exporters were vocal in their concern about the potential of a strike to disrupt trade.
“Exports are a critical revenue stream at all levels of the U.S. red meat supply chain, and our industry needs all U.S. ports operating to meet the needs of our international customers and to maintain the United States’ reputation as a reliable red meat supplier,” U.S. Meat Export Federation President and CEO Dan Halstrom said in a statement. “I want to thank all parties involved in the effort to get cargo moving again off the East and Gulf Coasts.”
The International Dairy Foods Association said that although the strike lasted three days,“ it will take weeks to clear the backlog caused by the strike.”
“IDFA members had to re-route and front-load shipments since early September due to concerns that a strike might occur, and truck rates increased as companies were stocking inventory for the holiday season,” the association said in a statement, urging the Biden administration “to remain actively engaged to avoid facing similar disruptions as we enter the New Year.”
Transportation Secretary Pete Buttigieg said the Department of Transportation will work closely with supply chain stakeholders "to support an orderly process of returning these ports to service and to encourage a good outcome in the subsequent contract negotiations.”
Sarah Zimmerman contributed to this story.
