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09-27-2012 - Update on ILA/USMX Negotiations

Perhaps the most monitored story in international trade news lately has been that of the contract negotiations between International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX).  During the past several weeks, the parties could not reach a contract agreement and the meetings stalled.  The ILA contract expires on September 30th.  The main concern was that the ILA would strike, causing an East and Gulf Coast shut down of the ports. To preemptively plan for a re-route of cargo to West Coast ports, the steamship line carriers published port congestion surcharge rates for 20’, 40’ and 40’ HC containers. 

Geo. S. Bush & Co., Inc. has learned the ILA and USMX have agreed to extend the current contract for 90 days while they continue to negotiate. This means no strike and no congestion surcharges until at least December 30, and hopefully they will reach an agreement before then on a new 10 year contract.

There will be some conditions which will be published on the Federal Mediation Services website.  Please see the attached link for additional information or email info@geosbush.comfor questions.