The US East and Gulf Coast ports have averted another strike, which will be a relief for shippers worldwide.

The International Longshoremen’s Association (ILA), that was threatening to call a further strike from 15 January, and the employer, US Maritime Alliance, reached an agreement with just two days to spare.

That’s good news, but the ports are experiencing a significant surge in traffic as shippers tried to get in before the strike was called and customers were stocking up on products in preparation for incoming president Donald Trump’s threatened tariff hike. 

According to a CNN report, both sides in the dispute agreed: “This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace.”

A statement from Xeneta, the world's largest ocean and air freight rate benchmarking and market analytics platform, said nearly $5bn has been wiped off the value of the biggest listed container shipping companies after the deal was reached. It said that shares in the three largest publicly traded container shipping companies - Denmark’s AP Møller-Maersk, Germany’s Hapag-Lloyd and Taiwan’s Evergreen Marine - fell between 6% and 8% after the announcement wiping a total of $4.7bn off their market value.

Emily Stausbøll, Senior Shipping Analyst at Xeneta, said it was likely that growth in spot shipping costs to the US would slow as a result but that this might offer only a temporary reprieve for businesses. “It will not take much for freight rates to begin spiralling once again, particularly given the ongoing conflict in the Red Sea and the return of Trump to the White House, which could escalate the US-China trade war.”

Photo: The Port of Miami.