The International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) have reached a tentative agreement for a new six-year master contract.

"The two sides agreed to continue to operate under the current contract until the union can meet with its full wage scale committee and schedule a ratification vote, and USMX members can ratify the terms of the final contract," says a joint statement.

The agreement averts any work stoppage on January 15, 2025, the statement added.

“This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernising East and Gulf coast ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong.

“This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace.”

Details of the new tentative agreement will not be released to allow ILA rank-and-file-members and USMX members to review and approve the final document, the statement added.

“Congratulations to the International Longshoremen’s Association and U.S. Maritime Alliance on reaching a tentative agreement that will give workers security and ensure continued prosperity for America’s shipping industry," Julie Su, Acting Secretary of Labor, said in a statement. "This administration has stood strong with workers every day and been unwavering in its view that when workers have a say and unions are strong, everybody wins – and contracts like this are proof. The parties sat together, tackled difficult issues, and in doing so have protected workers’ progress and ensured continued benefits for years to come."

USMX and ILA had reached a tentative agreement in October for a 62 percent increase in wages for the next six years.

The contentious issue of automation of port operations, however, will continue to be discussed and solutions could be found through negotiations. U.S. President-Elect Donald Trump had come out strongly in support of ILA and against automation.

With the strike threat out of the way, shippers could now be looking at the next challenges including geopolitical tensions, start of the Chinese New Year and the launch of Gemini and Premier alliances.