Ports on the US East and Gulf Coast have seen the conclusion of strike action following the achievement of a new wage accord. The International Longshoremen's Association and the United States Maritime Alliance have come to a provisional agreement on wages, alongside a commitment to extend the Master Contract until 15 January 2025, facilitating further discussions, notably on port automation.
The cessation of the three-day strike has led to a significant backlog, with 44 vessels awaiting entry and over 120 en route, as reported by Xeneta and Kuehne+Nagel, and Xeneta and Marine Benchmark, respectively. The market has expressed relief at the resolution, acknowledging the potential for extensive disruption to global supply chains.
Peter Sand, Xeneta Chief Analyst, highlighted the potential long-term effects on global supply chains, including delayed schedules into the Far East and subsequent impacts on freight rates. Recent Xeneta data indicates a 58% increase in average spot rates from North Europe to the US East Coast and a 48% increase to the US West Coast since the end of August.
Despite the strike's end, the agreement remains provisional, with automation at ports still a contentious issue. Sand cautioned that the market faces challenges ahead, with the possibility of further strikes if negotiations fail within the 100-day timeframe.
Source: Container News