Last week, the Alliance for Chemical Distribution (ACD) sent a letter to the International Longshoreman’s Association (ILA) and United States Maritime Alliance (USMX) leadership urging the organizations to postpone the deadline for a contract agreement. In the letter, ACD President and CEO Eric R. Byer outlined the challenges hindering negotiations and emphasized the significant economic and public consequences of a contract lapse.

“The existing master contract between the ILA and USMX is set to expire on January 15, 2025, imposing a negotiating timeline with many challenges.” Byer also highlighted the economic impacts the previous three-day strike caused to various industries and the challenges the chemical distribution industry would face if another strike were to occur. In addition to these challenges, there are multiple major holidays, the January 29 start of the Lunar New Year, and the upcoming inauguration and transition to the new presidential administration.

“In early October, during the three-day lapse in the master contract between the ILA and USMX, there was a substantial economic impact, weeks of supply chain disruptions, and challenges in getting necessary supplies to communities in the wake of the Hurricane Helene disaster,” wrote Byer. “Additionally, had the lapse continued for just a few more days, it would have resulted in ACD members losing stock of chemicals used for critical processes, such as water treatment. Considering this, we are concerned that a second lapse in contracts, complicated by the challenging timing issues of the Presidential Administration transition and the Lunar New Year, would cause irreparable harm to the U.S. economy and the American public.”

Byer concluded the letter by urging ILA and USMX to delay the contract deadline.

“Members of the ILA and USMX are stewards of the U.S. economy and are necessary for the movement of countless critical goods. They have held this vital role with immense responsibility, and we urge you to continue upholding this commitment by delaying the current contract deadline by 60 days to provide adequate time to negotiate a new contract without any lapse. This will help to ensure ports continue serving the American public and economy without disruption and critical goods continue to flow.”

To read the full letter click here. Learn more about ACD by visiting www.acd-chem.com.