East Coast Ports Avoid Disruptions As Union, Maritime Alliance Reach 6-Year Deal On Automation, Labor Protections

The International Longshoremen’s Association and U.S. Maritime Alliance reached a tentative six-year master contract agreement on Wednesday, averting potential supply chain disruptions at East Coast and Gulf ports ahead of the Jan. 15 deadline.

The deal, which requires ratification from both parties, notably includes compromises on port automation while preserving labor protections.

Sources familiar with the negotiations told CNBC that while full automation was excluded, USMX members gained the flexibility to implement modernization technologies, with guaranteed ILA positions tied to new equipment deployments.

A technology committee, including ILA President Harold Daggett and other union and port representatives, will oversee future technological implementations. The arrangement aims to enhance port efficiency and capacity while maintaining strong labor relations through 2031.

Both organizations stated in a joint announcement that the agreement “creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace.” Specific terms remain undisclosed pending member review and ratification votes, for which dates have not been set.

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