SHIPPING lines may have breathed a sigh of relief when the United States port strike last week, but some delays are still expected as ports now begin to sort through the backlog of queued ships.
October 4 saw a tentative agreement reached between the International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) for extension of the current master contract, ending the strikes which temporarily shut down 36 ports from Maine to Texas.
Despite lasting only three days, a backlog of over 50 vessels lined up outside ports that were affected by the strike, prevented from unloading, as more vessels continue to arrive daily.
Ocean analytics platform Xeneta anticipates it could take between two to three weeks for the flow of goods to return to normal levels.
The ILA and USMX tentatively agreed to a 62% wage increase over six years to end the strike, agreeing to extend the current contract to January 15, 2025 to allow the ports to reopen.
Shares in shipping companies saw a decrease across Asia and Europe following the agreement, with both sides to return to the negotiating table in the lead up to January.
The ILA is expected to push the issue of automation to the USMX, with the union calling for a halt on port automation projects that it fears would replace the jobs of its members.
The end of the strike comes in good time for parts of the country affected by Hurricane Helene, which caused destruction across the south eastern US, with supply chains having come under dual-pressure from the port strike and effects of the hurricane.
