ARTICLE
After a brief shutdown of ports along the Eastern Seaboard and Gulf of Mexico, negotiations between the Longshoremen and the U.S. Maritime Alliance took a positive turn on Thursday with a tentative wage agreement. The deal, which includes a 62% wage increase over six years, has temporarily ended the port strikes, as the two parties extended the master contract until January 2025 to continue negotiations on unresolved issues. A strike at the ports has an immediate impact on the U.S. supply chain, as the ports on the East and Gulf coasts handle over $2 billion worth of goods daily, and disruption would have caused delays in the flow of materials, including those crucial for the construction industry. Any prolonged disruption would increase material shortages and drive up prices, compounding existing inflationary pressures on the sector. Gilbane’s supply chain experts were predicting a 4-6 week disruption on just a 1-week strike. Two weeks would’ve pushed the recovery period into 2025. While the tentative agreement has provided temporary relief, the industry's stability still hinges on successful completion of the broader negotiations in early 2025.
After a brief shutdown of ports along the Eastern Seaboard and Gulf of Mexico, negotiations between the Longshoremen and the U.S. Maritime Alliance took a positive turn on Thursday with a tentative wage agreement. The deal, which includes a 62% wage increase over six years, has temporarily ended the port strikes, as the two parties extended the master contract until January 2025 to continue negotiations on unresolved issues.
A strike at the ports has an immediate impact on the U.S. supply chain, as the ports on the East and Gulf coasts handle over $2 billion worth of goods daily, and disruption would have caused delays in the flow of materials, including those crucial for the construction industry. Any prolonged disruption would increase material shortages and drive up prices, compounding existing inflationary pressures on the sector. Gilbane’s supply chain experts were predicting a 4-6 week disruption on just a 1-week strike. Two weeks would’ve pushed the recovery period into 2025.
While the tentative agreement has provided temporary relief, the industry's stability still hinges on successful completion of the broader negotiations in early 2025.