SHIPPING: Union, US ports reach tentative agreement, dock workers to return to work on Friday

HOUSTON (ICIS)–The three-day strike by US Gulf and East Coast dock workers has been suspended until 15 January to allow negotiations to resume, according to a joint statement from the union and ports.

The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) said they have reached a tentative agreement on wages and will extend the current contract while they continue to negotiate other outstanding issues.

“Effective immediately, all current job actions will cease, and all work covered by the master contract will resume,” the statement read.

The union went on strike on 1 October as negotiations were stalled.

The union was seeking a 77% increase over the next six years and commitments against any kind of automation at the ports – full or semi – that would replace jobs or historical work functions.

The USMX was offering about a 50% increase.

IMPACTS TO CHEM MARKETS
The strike had already had some impacts on the US chemicals industry, with polyethylene (PE) exports to Brazil being put on hold.

The polyvinyl chloride (PVC) industry is concerned as all US Gulf PVC exports move out of one of the impacted East Coast ports.

In the polyethylene terephthalate (PET) market, imports of PET resins have already been diverted to the US West Coast in anticipation of the work stoppage.

Thumbnail image shows a container ship. Photo by Shutterstock