NEW YORK/WASHINGTON/LOS ANGELES — A tentative wage deal has been struck by the International Longshoremen’s Association (ILA), representing U.S. dock workers, and the United States Maritime Alliance, which will bring an end to a three-day strike that had paralyzed shipping along the U.S. East Coast and Gulf Coast, as announced on Thursday.

This agreement extends their main contract until January 15, 2025, enabling further discussions on other contract details. However, the specifics regarding wage increases and other negotiated terms were not disclosed in the joint statement.

The statement indicated, “Effective immediately, all current job actions will cease, and all activities covered by the Master Contract shall resume.”

The proposed deal includes a wage increase of approximately 62% over six years, as reported by The Bergen Record, part of the YSL News NETWORK.

The union initially aimed for a 77% wage raise, while the employers had previously offered nearly a 50% increase.

This settlement concludes the largest work stoppage of this nature in almost 50 years, which had halted the unloading of container ships from Maine to Texas and posed a risk of shortages of various goods, disrupting the flow of shipments at major ports.

Biden and Retail Federation Express Support for Agreement

President Joe Biden commended the agreement in a statement shortly after it was announced.

“I extend my gratitude to the union workers, carriers, and port operators for their patriotic actions to reopen our ports and secure critical supplies for Hurricane Helene recovery efforts,” Biden stated. “Collective bargaining is effective, playing a vital role in strengthening our economy from the ground up.”

The Biden administration supported the union, urging port operators to enhance their proposals in order to finalize an agreement, citing the significant profits the shipping sector has experienced since the COVID-19 pandemic.

“By the grace of God it will hold,” Biden told reporters at Joint Base Andrews after a tour of areas affected by storms in Georgia and Florida.

The administration consistently resisted pressures from business groups and Republican lawmakers to intervene in the strike using federal powers, which might have reduced support among unions as the November 5 presidential election approaches.

A trade group echoed the President’s sentiments after the tentative agreement was reached.

“Ending the strike and allowing the reopening of East and Gulf Coast ports is a positive development for the nation’s economy,” stated Matthew Shay, CEO of the National Retail Federation (NRF).

Prior to the agreement, the NRF had urged the Biden administration to “utilize every available authority and resource” to end the strike in a statement made on Monday.

Impact of the Strike and Avoidance of Consumer Disruption

By Wednesday, at least 45 container ships were stranded outside the affected East Coast and Gulf Coast ports, a rise from only three before the strike started on Sunday, according to Everstream Analytics.

The ILA initiated the strike, involving 45,000 workers, on Tuesday after negotiations for a new six-year contract broke down, marking its first significant action since 1977.

This strike impacted 36 ports, including major hubs like New York, Baltimore, and Houston, which handle a variety of containerized goods.

Economists believe that the initial port closures would not impact consumer prices significantly because companies had rushed shipments of essential items in recent months. However, a prolonged strike could have had eventual effects, particularly on food prices, according to analysts at Morgan Stanley.

“After the first week, we should prepare for some effects on perishable goods such as bananas, other fruits, seafood, and coffee, leading to fewer products available for consumers and a potential rise in prices,” remarked Tony Pelli, global director for security & resilience at BSI Americas, to Reuters.

(This story has been updated with new information.)