US Port Strike Averted – Update February 2013

February 04, 2013 | News

As you know we have been closely monitoring the ongoing dispute between the International Longshoremen Associaiton (ILA) and the US Maritime Alliance (USMX) over the citiical issue of container royalties.

We have today received an update from the British International Freight Association (BIFA);

UPDATE February 4th 2013

UK shippers and forwarders have welcomed the news that the threat of a US east coast dock strike that could have disrupted global trade flows has been averted.

The British International Freight Association (BIFA) said a tentative agreement for a new six-year master labour contract between the US Maritime Alliance and the International Longshoremen’s Association was “good news”.

Federal Mediation and Conciliation Service Director George Cohen issued a statement over the weekend on the labour negotiations between the two sides in which he said: “I am extremely pleased to announce that the parties have reached a tentative agreement for a comprehensive successor Master Agreement.”

He added: “Local negotiations are ongoing and will continue without interruption to any port operation.”

Cohen said he could not disclose any details concerning the substantive provisions that had been reached.

Peter Quantrill, Director General of BIFA, the trade association that represents UK freight forwarders, said: “By removing some of the uncertainty, this tentative agreement is good news for our members; as well as anyone else involved in physical trade with the US; and shows that mediation can deliver results.

“It would appear that it will business as usual through the container ports that might have been affected had the tentative agreement not been reached, which makes the news all the more welcome.”

The current contract between the ILA and its employers represented by USMX was originally due to expire on September 30, last year, but was twice extended, first to late December 2012, and then to this Wednesday (February 6).

This news is extremely positive and we will continue to monitor and provide you with any updates as the situation progresses.

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