Global shipping industry sighs in relief as US East Coast dockworkers suspend strike
The global shipping industry is breathing a sigh of relief after US East Coast dockworkers suspended a three-day strike that cost the sector an estimated $6.3 billion, according to Bloomberg.
The global shipping industry is breathing a sigh of relief after US East Coast dockworkers suspended a three-day strike that cost the sector an estimated $6.3 billion, according to Bloomberg. Operations at an Alabama shipping terminal are expected to resume as early as 7 AM on Friday.
The resolution is expected to ease pressure on West Coast shipping routes, which had seen increased traffic as shippers pre-emptively diverted goods in anticipation of the strike, as CommoPlast previously reported. Bloomberg further notes that the tentative agreement between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) includes an almost 80% wage increase over the next six years.
This development comes as a welcome relief, particularly after US East Coast shipping activity began to slow last week when the ILA's strike warning led many commodities traders to seek alternative shipping routes.
Despite the disruption, the three-day strike has not caused significant upward pressure on commodity prices, largely due to higher shipping volumes earlier in the year.
Written by: Derek Yong