Dockworkers at U.S. East and Gulf coast ports have agreed to resume cargo handling while continuing contract negotiations with their employers.
The International Longshoremen’s Association (ILA) has extended the contract until January 15th, and work will resume on Friday, the union announced on Thursday.
“The strike is over,” said Scott Cowan, President of ILA Local 333, to an affiliate, adding that dockworkers will return to loading and unloading cargo on Friday morning following a three-day work stoppage.
Cowan stated that the union has accepted an offer that would increase wages by 61.5% over the six-year contract, “and we’re going to have other language to protect us from automation worked out over the next few months and other issues that we need resolved.”
Container ports from Houston to Miami and up to Boston have been closed since the labor contract between the ILA and the U.S. Maritime Alliance, representing terminal operators and shipping lines, expired on Tuesday.
Numerous ships carrying containers and automobiles have been anchored off the coast of major trade hubs, including New York, South Carolina, and Virginia, over the past few days. The cargo backlog resulting from three days of port closures is expected to take 12 days to clear, according to analysts.
It remains unclear whether the terminals, which had to fully shut down operations prior to the strike, will be open this weekend to help alleviate the backlog.
APM Terminals in Mobile, Alabama, notified customers that they would resume operations at 7 a.m. on Friday, though “weekend hours have not been decided at this time.”
President Joe Biden, who had urged port employers and shipping lines to reach an agreement with the striking dockworkers, commended both sides and linked the port closures to hurricane recovery efforts.
“I want to thank the union workers, the carriers, and the port operators for acting patriotically to reopen our ports and ensure the availability of critical supplies for Hurricane Helene recovery and rebuilding,” Biden said in a statement on Thursday after the deal was announced. “Collective bargaining works.”
‘Going to hold’
Industry groups have been raising concerns since June when the ILA called off negotiations with the USMX and have been urging Biden to intervene to end the strike.
The National Retail Federation applauded the decision to reopen ports while negotiations continue, and said “it is critically important” that the two sides sign a final deal ahead of the new deadline to prevent a similar situation on January 15th.
“The sooner they reach a deal, the better,” said CEO Matthew Shay in a statement.
Biden expressed optimism about the strike suspension.
“We’ve been working hard on it,” he told reporters on Thursday evening. “By the grace of God and good will of neighbors, it’s going to hold.”