Fifty-Mile Rule

Summary of Fifty-Mile Rule

An arrangement between the International Longshoremen's Association and steamship operators designed to eliminate waterfront labor unrest arising from the use of ocean containers. Essentially, the agreement provides that work for longshoremen will be preserved by permitting ILA labor to load and/or unload ocean containers bound from or to points within fifty miles of an ocean port. An exception is made for a qualified shipper or qualified consignee, which means a shipper/importer located with fifty miles of the port who has an actual proprietary interest in the goods. A qualified shipper or importer may employ his own or other non- ILA labor to handle the goods. The object of the measure is to ensure that less-than-containerload shipments would be routed to the piers to be handled by ILA labor, rather than to non-ILA warehouses operated by consolidators.

A steamship operator allowing cargo to be released in violation of the accord is subject to liquidated damages of $ 1,000 per container.

The pact has been challenged through the Federal courts but continues to function.

(Main Author: William J. Miller)