Gulf and East Coast Ports -- ILA Talks Reach an Impasse

ILA and USMX Talks Reach an Impasse

Dear Catherine"Cathy", OHL recently received word that negotiations on a new contract between the International Longshoremen's Association (ILA) and employers represented by the U.S. Maritime Alliance (USMX) broke off abruptly this afternoon. The ILA and USMX were slated to mainly discuss container royalties - payments that are made to longshoremen based on the weight of containerized cargo. USMX has wanted to cap those payments at existing levels and eliminate royalties for new hires. The ILA has been reported to have said they are willing to extend the contract to Feb. 1st and keep talking if USMX would be willing to take the container royalty cap off the table. In exchange the ILA would be willing to show USMX other ways to offset the royalties. Reportedly USMX declined the ILA’s offer and in turn the ILA said they plan to strike as of Dec. 29th unless they hear back from USMX before then. Dave Adam, senior vice president and chief operating officer of USMX, said "employers are willing to continue to bargain in good faith," but that the ILA had put terms on the extension that were unacceptable.” OHL will continue to monitor the situation closely to ensure we are ready to re-route cargo as needed. The contingencies being planned will be subject to the underlying carrier’s service and availability.