Shipping stocks fall after US dock workers reach deal to end strike By Investing.com

Investing.com — Shares of Denmark’s AP Moeller – Maersk (CSE: ) and other shipping companies fell on Friday after news that U.S. port workers ended the largest shutdown of its kind in nearly half a century.

US dockworkers on the East and Gulf coasts have suspended a days-long strike after their union and the group representing major maritime firms reached an agreement on Thursday.

The job action has shut down ports from Maine to Texas, threatening large parts of the US economy by straining supply chains and imports of goods such as food and pharmaceuticals. Analysts at JPMorgan said the strike was costing the economy up to $4.5 billion a day, the Financial Times reported.

The tentative deal will see wages rise by about 62 percent over six years, Reuters reported, citing two sources familiar with the matter. The number would fall between the 77% sought by the International Liquidators Association (ILA) workers’ union and the nearly 50% offered by the employers’ group, the United States Maritime Alliance (USMX).

In a statement, the ILA and USMX said they will extend their main contract until January 15 of next year. However, key issues remain between the two, including workers’ concerns that automation in ports could cause job losses.

Shares in shipping groups such as Hapag Lloyd of Germany (ETR:) and Switzerland Kuehne & Nagel (SIX:) decreased. Japanese firms Nippon Yusen ( TYO: ), Kawasaki Kisen Kaisha ( TYO: ) and Mitsui OSK Lines ( TYO: ) also fell.

Investors betting on a rebound in freight rates recently depressed by the strike sold following the announcement, analysts told Reuters.

Analysts at Vital Knowledge said the halt to the strike was “clearly positive”, but added that the resolution’s impact on wider action was likely to be “relatively minor”.

“If this were week (four or more) of the shutdown, the reaction would be more optimistic, but the strike is only a few days old,” they said in a note.

(Reuters contributed reporting.)