Ports on the US East and Gulf Coasts began reopening after dockworkers and port operators reached a wage agreement, ending the largest work stoppage in nearly 50 years, Reuters reports.
The deal, announced by the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX), includes a wage hike of around 62% over six years, raising average wages from $39 to approximately $63 an hour. Despite the quick resolution of the strike, clearing the backlog of cargo will take time, with at least 54 container ships queued outside ports as unloading had been halted. The strike, launched by 45,000 workers, affected 36 ports and was expected to cost the US economy an estimated $5 billion per day.
Despite the quick resolution of the strike, clearing the backlog of cargo is estimated to take two to three weeks, with at least 54 container ships queued outside ports as unloading had been halted. Major retailers like Walmart and IKEA, which rely heavily on the affected ports, were particularly impacted, as well as the price of coffee. Shipping stocks fell globally as investors adjusted expectations for freight rates.
Although the wage deal resolved the immediate strike, other topics, including automation, remain unresolved. The National Retail Federation welcomed the deal, emphasizing its importance for the economy and families across the nation.
