The union representing dockworkers across U.S. ports has temporarily suspended their strike as negotiations continue. The International Longshoremen's Association (ILA) initiated the strike on Tuesday at 14 major ports along the East and Gulf coasts, halting operations from Maine to Texas.

A tentative agreement on wages has been reached, and workers will return to work on Friday. Negotiations on other unresolved issues will resume on January 15. This was the first major port strike in almost 50 years, raising concerns about its impact on holiday shopping and the upcoming presidential election.

"Effective immediately, all current job actions will cease and all work covered by the Master Contract will resume," said the ILA and the United States Maritime Alliance (USMX) in a joint statement. Under the tentative deal, wages are expected to rise by 62% over six years, although talks about issues like automation will continue.

Patrick L. Anderson, CEO of Anderson Economic Group, said: “The short ILA strike... will surely be ranked as one of the most lucrative 3 days in labor-management history. The ILA workers have apparently gained 60% wage increases after giving up 3 days of work in a strike that inflicted no serious damage on the US economy.”

President Joe Biden applauded the agreement, saying it "represents critical progress toward a strong contract." He added, "I congratulate the dockworkers from the ILA, who deserve a strong contract after sacrificing so much to keep our ports open during the pandemic. And I applaud the port operators and carriers who are members of the US Maritime Alliance for working hard and putting a strong offer on the table."

Business leaders also welcomed the news. Matthew Shay, president of the National Retail Federation, said, “The decision to end the current strike and allow the East and Gulf coast ports to reopen is good news for the nation’s economy.”

Under the previous contract, which expired Monday, dockworkers earned between $20 and $39 per hour, with additional benefits. The ILA, which represents around 47,000 members, is also seeking protections against automation in the ongoing negotiations.

Please be advised that as of 12:01 A.M. the long‐feared strike by the ILA has become a reality. This means that all U.S. East and Gulf Coast ports are shut down until further notice.

As a result, no cargo will be able to move in or out of any of the affected ports. Additionally, sources have indicated that we should expect the strike to last at least one‐to‐two weeks and that severe backlogs and congestion will continue well into next year.

Clients with cargo already in transit to U.S. East and Gulf Coast ports can expect to, in the short term, have their cargo trapped at sea. If the strike lasts longer than expected it is possible that carriers may declare “Force Majeure” and unload all cargo bound for U.S. East and Gulf Coast ports at a neighboring international port.

Additionally, all containers in each of the U.S. East or Gulf Coast ports are now trapped and it is possible that those containers will be subject to detention and demurrage charges. Also, carriers have said that they will not cover or reimburse any chassis or other third‐party charges connected to the work stoppage.

Finally, regarding empty container returns, while each carrier has its own policy, you should assume that you may be assessed a fee.

In the meantime, please reach out to your customer services representative if you have any questions or concerns.

Please be aware that due to flooding, there are severe delays on the M5. Many depot trunk vehicles are stuck in standstill traffic and unable to return goods to depots.

As a result, several areas may not be able to meet their services for today. Depending on the severity, this situation may also impact goods going out on Saturday and Monday.

Areas of potential issue include:

• BA8, 20-22
• DT1-6, DT8-11
• SP2, 3, 4, 7, 8, 9
• TA10-20
• TA10-20
• BS
• BA1, 2
• EX21-23
• PL1-26-35
• TQ5-11
• DT7
• EX1-17, 20, 24
• TA21, 22
• TQ1-4. 12-14
• EX18, 19, 31-39
• TA24
• TR & PL27 -28
• BA3-7, 9 -19
• TF1-13
• WV15, 16

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