Dockworker strike ends as U.S. East and Gulf Coast ports reopen amid cargo delays

Posted on October 4, 2024   |  

U.S. East and Gulf Coast ports reopened Thursday night after dockworkers and port operators agreed on a wage increase, ending the biggest strike in nearly 50 years.

The strike caused at least 54 container ships to be stuck outside the ports for 3 days, with concerns about product shortages like bananas and auto parts.

The International Longshoremen's Association (ILA) and U.S. Maritime Alliance (USMX) reached a deal, immediately stopping the strike.

The agreement includes a 62% wage increase over 6 years, raising the average hourly pay from $39 to $63.

Shipping companies in Asia, including Evergreen Marine, Wan Hai Lines, and Yang Ming Marine, saw stock prices drop by 8.8% to 10% as the quick deal reduced fears of higher freight costs.

The strike, which involved 45,000 workers and affected 36 ports from Maine to Texas, was the first major one since 1977.

Even though the wage deal ended the strike, discussions on issues like port automation, which workers worry could lead to job cuts, are ongoing.