The port strike has reached a conclusion after only four days. Initiated on October 1, 2024, reports revealed that the U.S. East Coast and Gulf Coast ports have been reopened after dockworkers and port operators reached a wage deal to settle the strike.
"The port strike ended fairly quickly, removing any significant downside risk to the economy this quarter," said Ryan Sweet, Chief U.S. Economist at Oxford Economics, in a report from Reuters.
The report went on to note that the International Longshoremen's Association workers union and United States Maritime Alliance (USMX) port operators announced the deal late on Thursday. This included an agreed-upon wage hike of around 62 percent over six years, raising average wages to about $63 an hour from $39 an hour, the source noted.
While the ports have reopened as of today, clearing the cargo backlog will still take some time. Yesterday, at least 54 container ships had lined up outside the ports as the strike prevented unloading, posing potential shortages of a variety of goods ranging from bananas to auto parts.
Pricing platform Xeneta explained that it was likely to take two to three weeks for the normal flow of goods to be reestablished.
Deli Market News will continue to keep you abreast of any updates regarding the supply chain, so stay tuned.
