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US Polyethylene Exports to Resume as Union Port Members End Strike and Return to Work Friday
10/03/2024
Polyethylene resin producers and exporters are breathing a collective sigh of relief as international seaports will reopen, averting an unintended supply glut of Polyethylene typically destined for export markets.
The International Longshoremen Association (ILA) union agreed to extend a contractual agreement with The United States Maritime Alliance (USMX), which represents shipping lines, port authorities and terminal operators through January 15th 2025.
As the Calendar flipped to October, the Longshoremen, unable to come to a new labor agreement, proved to be a critical part of the supply chain by walking off the job at 38 Gulf and East Coast ports. An extended strike would have ground many industries to a near-halt with negative consequences reverberating world-wide, with particular impact on the US Polyethylene industry which exports some 45% of its raw materials production.
However, a tentative deal was reached late Thursday October 3rd and ILA union workers will resume operations at East and Gulf coast ports tomorrow, Friday October 4th. The agreement would raise hourly pay from $39 by $4/hour each year for six years, totaling a 62% increase over the life of the contract.
The deal will still require support from union members before taking full effect. Should the ILA members vote down the deal, which has happened in the past, a renewed strike could still occur come January.
The 3-day strike has backed up a considerable amount of inbound and outbound container shipments, which will take some time to work through, but a major disaster has been averted, and soon this episode will be left as just a footnote in history.
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