The threat of a US East and Gulf Coast port strike has been hanging over the shipping industry like a dark cloud in recent weeks, but a breakthrough in negotiations appears to have averted the strike action planned for January.

In October, 45,000 workers in 36 ports started an indefinite strike, but returned to work after three days when a wages deal was agreed. However, the International Longshoremen’s Association (ILA) only agreed to return temporarily and set a deadline of January 15th for further outstanding issues to be resolved with the United States Maritime Alliance (USMX).

All previous negotiations had broken down and a strike looked inevitable. Carriers had been making contingency plans and had also announced a strike surcharge this week.

However, much to the industry’s surprise, the two parties were able to come to a tentative agreement this week that appears to have brought an end to the strike threat.

A joint statement from the two parties reads “We are pleased to announce that ILA and USMX have reached a tentative agreement on a new six-year ILA-USMX Master Contract, subject to ratification, thus averting any work stoppage on January 15, 2025”

Finally some good news to start a new year with!