The strike at ports on the US East and Gulf Coast ended Thursday after a new wage agreement was reached, though a backlog of more than 40 ships remains, delaying billions of dollars in cargo. The International Longshoremen’s Association and the United States Maritime Alliance agreed on wage terms and extended the Master Contract until January 2025 to allow further negotiations, particularly on the contentious issue of port automation.
The three-day strike has caused significant delays, with 44 ships still waiting to dock and over 120 more en route. Peter Sand, Chief Analyst at Xeneta, warned that even this brief disruption will have long-lasting effects on global supply chains, with delays expected into 2025, especially leading up to the Lunar New Year in January.
Freight rates have already surged, with spot rates from North Europe to the US East Coast rising by 58%, and rates to the West Coast up 48%. Sand cautioned that while the strike has ended, the unresolved issue of automation could lead to further strike action if no agreement is reached within the next 100 days.
