Dockworkers Secure Six-Year Agreement at East and Gulf Coast Ports

TL;DR

• Dockworkers on the East and Gulf Coasts approved a six-year contract, effective through September 2030.
• Pay rises from $39 to $63 per hour, with curbs on full automation.
• This is a win for the business sector - ensuring steadier cargo flows.

Dockworkers represented by the International Longshoremen’s Association (ILA) have overwhelmingly ratified a six-year contract with the United States Maritime Alliance (USMX), signaling a major step toward operational stability. The new agreement takes effect retroactively on October 1, 2024, and runs until September 30, 2030.

Members voted 99% in favor, gaining a notable wage increase from $39 to $63 per hour. The deal also limits fully automated terminals—defined as having no human involvement—while allowing for collaboration on selective technology upgrades. This move follows a tense period in October, when the ILA staged its first coastwide strike in five decades, briefly halting major ports like Savannah and New York-New Jersey.

Industry observers say the contract reduces the immediate threat of disruptions, which can create costly bottlenecks for retailers, manufacturers, and consumers. By clarifying how automation may (or may not) be introduced, it also provides employers with some flexibility to invest in efficiency tools—although the union’s concerns over job security remain front and center.

West Coast ports, represented by the International Longshore and Warehouse Union (ILWU), reached their own six-year deal in 2023, alleviating fears of broader supply chain upheaval. The balance between automation and labor, however, remains a recurring theme in both regions.

Our Take

We see this contract as a relief valve for everyone in logistics. Drayage carriers and 3PLs thrive on consistent schedules, while shippers benefit from fewer port shutdowns. However, the question of automation is far from settled. According to the Container Port Performance Index 2023, many U.S. ports—including Los Angeles/Long Beach and Savannah—rank near the bottom globally, partly because automation and advanced technologies are less widespread. By contrast, ports in China, the Middle East, and Southeast Asia leverage robotics and sophisticated IT systems to streamline cargo handling and slash turnaround times.

If U.S. terminals remain wary of adopting large-scale automation, could we risk falling further behind in capacity and efficiency? This dynamic can weigh on drayage operations: when port systems aren’t optimized, drivers often wait longer to pick up or drop off cargo, limiting their earning potential. That has broader implications for overall supply chain efficiency and costs. While the contract restricts fully automated terminals, discussions around technology will likely remain a key theme moving forward, especially as global competition intensifies.

*World Bank and S&P ranks ports based on their efficiency, focusing primarily on the total time vessels spend in port

Sources:

WSJ - Dockworker Approve Labor Deal

Supply Chain Dive: ILA ratifies 6-year labor contract

World Bank: Container Port Performance Index 2023