by Lloyd's List

The strike, that kept many stakeholders in the shipping sector concerned, has been averted.

Contract talks between the United States Maritime Alliance (USMX) and the International Longshoremen's Association (ILA), which represents dockworkers, resumed Tuesday. They declared a tentative agreement on a new six-year pact by late Wednesday.

In a joint statement, the two sides confirmed they would continue operating under the current contract until the union could meet with its full wage scale committee and schedule a ratification vote, and USMX members could ratify the final contract terms.

The ILA and USMX stated that the agreement safeguards current ILA jobs and sets a framework for implementing technologies that will create more jobs while modernising east and Gulf coast ports, enhancing their safety and efficiency, and increasing their capacity to maintain strong supply chains.

Previously, USMX had agreed to a 61.5% wage increase for ILA workers, contingent on reaching a deal on port automation by 15 January. This wage increase proposal followed a three-day strike at US east and Gulf coast ports from 1-3 October.