Port Negotiations Deadline Extended

The United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) have agreed to extend contract negotiations an additional 90 days beyond the previous Sept. 30 deadline.

Contract negotiations between East and Gulf Coast ports and longshore workers have dragged out for almost a month and sent many manufacturers and importers scrambling to line up alterative shipping routes and carriers if an agreement had not been reached by Sept. 30, the contract’s previous expiration date. Many feared workers could strike just as the crucial Holiday shipping and sales season got underway.

The decision was applauded by the National Retail Federation as a “significant step forward” that will “provide for a stable Holiday shipping and shopping season over the next few months,” said Jonathan Gold, NRF vice president for supply chain and customs policy, in a statement.

“The National Retail Federation (NRF) has long urged both sides to continue their negotiations up to and beyond the
Sept. 30 contract deadline in order to avoid any supply-chain disruption or delay, and we applaud today’s decision,” he said. “While this extension, facilitated by the Federal Mediation and Conciliation Service [FMCS], will provide both sides with more time, it is still critically important that USMX and ILA remain at the negotiation table to hammer out a final contract. Until a final contract is ratified, America’s retail community will remain concerned. NRF continues to urge both sides to negotiate in good faith to reach a firm and final deal for the good of the supply chain and the good of the U.S. economy.”

According to a statement released by FMCS Director George H. Cohen, process on several “important subjects” has been made in the negotiations and the decision to extend the deadline was made to “avoid any interruption in interstate commerce.”“This extension will provide the parties an opportunity to focus on the outstanding core issues in a deliberate manner apart from the pressure of an immediate deadline,” Cohen said. “The negotiations will continue under the auspices of the FMCS. Due to the sensitive nature of these high-profile negotiations, we will have no further comment on the schedule for the negotiations, their location or the substance of what takes place during those negotiations.”

Alison A. Nieder