Strikes at ports on the US East Coast and Gulf Coast, which would have caused an economic and supply chain crisis, have been called off—with ocean container freight rate growth now expected to slow or fall.
The strikes were set to begin on 15 January and would have forced the closure of ports from Maine to Texas. This has now been averted after a tentative agreement over a new six-year master contract was reached between the International Longshoremen’s Association (ILA), which represents port workers, and the US Maritime Alliance (USMX).
Data from Xeneta—the ocean and air freight intelligence platform—shows average spot rates from the Far East to US East Coast had already increased 26% since 14 December and were expected to rise further had the strikes gone ahead.
