US port strike ends, but clearing long queues of ships will take time Reuters

By Doyinsola Oladipo and David Shepardson

(Reuters) – Ports on the U.S. East Coast and Gulf began to reopen late on Thursday after dockworkers and port operators reached a wage deal to resolve the industry’s largest work stoppage in nearly half a century , but clearing the backlog will take time.

At least 54 container ships queued outside the port for three days as the strike prevented unloading and threatened shortages of everything from bananas to auto parts. The figure by Everstream Analytics was calculated at 4:00 pm ET (2000 GMT). More ships are sure to arrive.

The International Liquidators Association (ILA) workers union and the United States Maritime Alliance (USMX) port operators announced the agreement and the immediate end of the strike on Thursday evening. Sources said they agreed to a pay increase of about 62 percent over six years, raising the average wage to about $63 an hour from $39 an hour.

Shares in Asian shipping companies fell sharply in Asia on Friday as the deal, agreed much earlier than expected, eased the prospect of an increase in shipping rates.

“Investors who were hoping for a short-term rebound in freight rates, which are in a downward trend, are selling after the strike ended,” said Yang Ji-hwan, an analyst at Daishin Securities in Seoul.

Taiwan’s Evergreen Marine, Wan Hai Lines and Yang Ming Marine fell between 8.8% and 10% in their biggest drops in months.

The ILA on Tuesday launched a strike by 45,000 dock workers, their first major work stoppage since 1977, affecting 36 ports from Maine to Texas. JP Morgan analysts said the strike would cost the US economy around $5 billion a day.

Retailers account for about half of total container shipping volume, with Walmart (NYSE: ), IKEA and Home Depot (NYSE: ) among those that rely heavily on East Coast and Gulf Coast ports, according to eMarketer analyst Sky Canaves.

According to bill of lading data from Import Yeti, a data firm, some of the importers relying on the affected ports range from IKEA and Walmart to Goodyear Tire & Rubber.

East Coast ports are also key destinations for coffee, and prices have already risen due to port disruptions.

The strike ended with the tentative agreement on wages, although the two sides will continue to work out other issues, including the ports’ use of automation that workers say will lead to job losses.

“The decision to end the current strike and allow East and Gulf Coast ports to reopen is good news for the nation’s economy,” the National Retail Federation said in a statement. “The sooner we reach a (final) deal, the better for all American families.”