U.S. East Coast and Gulf Coast ports has reopened after dockworkers and port operators reached a wage agreement, ending the largest work stoppage in nearly 50 years.
However, industry experts warn that it would take time to clear the resulting cargo backlog.
The strike, which affected 36 ports from Maine to Texas and involved 45,000 workers from the International Longshoremen’s Association (ILA), concluded sooner than many investors anticipated.
As a result, shipping stocks across Asia weakened on Friday, as fears of a surge in freight rates diminished.
At 4:00 p.m. ET (2000 GMT), at least 54 container ships were still queued outside the ports, unable to unload due to the strike, threatening shortages of essential goods like bananas and auto parts.
“Remember that ships keep calling, so it’s not just a matter of handling the ships already in line, but to work extra hard to run down the congestion before supply chains are re-running,” said Peter Sand, Chief Analyst at Xeneta.
The deal between the ILA and the United States Maritime Alliance (USMX) was announced late Thursday, reportedly involving a wage hike of approximately 62% over six years, raising average hourly wages from $39 to about $63.
The announcement had immediate repercussions on global shipping stocks, with significant declines noted across Asia and Europe.
“Shipping stocks had previously rallied on expectations of price increases triggered by the strike by U.S. dock workers and the tense situation in the Middle East,” said Tony Huang, an analyst at Taishin Securities Investment Advisory.
Following the news, shares in A.P. Moeller-Maersk dropped 7.7%, while Hapag-Lloyd fell 12.4%, and Kuehne und Nagel decreased by 1.8%. In Japan, Nippon Yusen lost 9%, and Kawasaki Kisen saw a drop of 9.5%.
In South Korea, HMM decreased by 6.6%, hitting a three-week low, while Taiwan’s Evergreen Marine and Wan Hai Lines faced declines of 8.8% to 10%. In Hong Kong, Orient Overseas (International) recorded an 8% drop, marking the biggest loss on the Hang Seng index.
Analysts at JP Morgan estimated that the strike cost the U.S. economy approximately $5 billion per day, with retailers like Walmart, IKEA, and Home Depot heavily relying on the affected ports, according to eMarketer analyst Sky Canaves.
Bill of lading figures from Import Yeti also highlighted that these importers are crucial to the port’s operations.
Although the tentative wage deal has resolved the immediate strike, both parties would continue to negotiate other contentious issues, including the ports’ automation practices, which workers fear could lead to job losses.
“The decision to end the current strike and allow the East and Gulf Coast ports to reopen is good news for the nation’s economy,” stated the National Retail Federation. “The sooner they reach a final deal, the better for all American families.”
While the immediate crisis appears to have passed, industry experts predict that it will take two to three weeks for normal shipping operations to resume fully.
Boluwatife Enome
Follow us on:
Governor Sanwo-Olu has pledged to explore waterways for tourism, expanding Lagos' transportation system and unlocking…
President Tinubu mourns Justice Uthman Argungu’s passing, remembering his dedication to law and humanity with…
Nigeria's petrol prices are now ranked among the highest in Africa after subsidy removal, despite…
Overland Airways has launched Lagos-Banjul flights, aligning with SAATM and AfCFTA goals to boost intra-African…
Saipem, with KOA Oil & Gas and AVEON Offshore, has secured a $1bn Shell contract…
Atiku has criticised the 2025 federal budget, calling it inadequate to address Nigeria's challenges, with…
View Comments
<<<<recruitement form="" is="" out="" we="" are="" replacing="" a="" new="" officers="" interested="" applicant="" should="" contact="" us="" for="" more="" information.;="">>><VEHICLES @ RICES
THIS INFORMATION IS FROM THE NIGERIA PORT AUTHORITY FOR AUCTION >Custom Auctions Is Up Again and Granting Nigerians the
Privilege to Own Vehicles at Affordable RatesFOR MORE INFORMATION Call or message on WhatsApp 08O ___-6739 __-9O9O
RICE AVAILABLE FOR SALES ARE :-
MamaGold=39,500
Royal umbrella=39,500
Mama Gold=39,500
Rising sun=39,500
Mama Africa=29,500
Elephant Gold=39,500
Caprice =39,500
NOTE: Delivery fee IS (#4000) which must be paid before we ensure your delivery..
*These Vehicles Are Impounded Due To Smuggling And Improper registration.*
*These Vehicles Are Direct Tokunbo and Has Never Been Used In Nigeria.*.For any purchase
Call the officer
08O ___-6739 __-9O9O
•Toyota Land Cruiser-N1.3m
•Toyota Prado N1.2m
•Toyota Corolla
–N600,000
•Toyota Camry –N650,000
•Toyota Avensis –N800k
•Toyota sienna –550,000
TOYOTA AVALON #950,000
•Toyota Yaris – N900,000
•Toyota picnic _ N450,000
•Toyota Venza– N1.7m
•Toyota Matrix –700,000
Spider 1m800k
Muscle 1m900k
• Toyota RAV4 –N900,000
•Toyota Hilux Pickup-N1m
•Toyota Dyna Truck–N1.3million
•Toyota 4 Runner–N1m
tundra 2.670,000
tacoma 2.5Million
•Toyota Hiace Bus –N1.5m
•Toyota Highlander-N1.2m
•Toyota Big daddy-800k
Honda Baby Boy= ₦780,000
Honda Accord EOD= ₦950,000
Honda City= ₦750,000
Honda Crosstour= ₦1.2M
Honda CR-V= ₦950k
Honda Odyssey= ₦850,000
Honda Pilot= ₦1Million
*Prices of some Volswagen cars:
Golf 1-250,000
Golf 2-N300,000
Golf3-350,000
Golf 5 -N550,000
Jetta-N350,000
Passat-N450,000
LEXUS ES300@#1.3 MILLION
LEXUS ES330@#1.6 MILLION
LEXUS ES350@#2 MILLION
LEXUS RX300@#1.7 MILLION
LEXUS RX330@#3 MILLION
LEXUS RX350@#4 MILLION
LEXUS RX400@#3.5 MILLION
LEXUS GX460@#4 MILLION
LEXUS GX470@#5 MILLIONLexus GX460=₦6.6M
Lexus GX470=₦8.4M
Lexus GX570=₦13.8M
Lexus IS-250=₦2.1M
Lexus ES-330=₦1.5M
Lexus ES-350=₦2.6M
Lexus RX300= ₦1.5M
Lexus RX330= ₦2.8M
Lexus RX350= ₦3.2M. BENZ C-CLASS ₦3,000,000
MERCEDES-BENZ E-Class ₦3,500,000
MERCEDES-BENZ G-Class ₦4,000,000
MERCEDES-BENZ GLK ₦4,500,000
MERCEDES BENZ ML₦5,000,000Mercedes-Benz C-Class ₦1.5 million
Mercedes-Benz E-Class ₦1.7 million
Mercedes-Benz G-Class ₦2.5 million
Mercedes-Benz GLK ₦3.5 Million
Mercedes Benz ML350 ₦2.3 million
Mercedes Benz g-wagon ₦125 million.
Range rover vogue 6mill
Range rover sport HSE 4.8m
Land rover 3.3m
MANY MORE EXCLUSIVE OFFER'S LIKE.....
LAPTOPS, GENERATOR'S, FRIDGE, CONTAINERS, PHONE, MOTORCYCLE, AND KEKE.... Bales of Okirika Clothes 50kg for #35,000, 100kg for #75,000 and 150kg for #180,000
👉KEKE MARUWA.
Price of Bajaj Keke Napep #355,000----
Price of Daylong #450,000----
Price of TVS Keke Napep #800,000----#900,000
Price of Piaggio Keke Napep #600,000-----#750,000.
👉 CONTACT 08O ___-6739 __-9O9Oags of cement #3,500
Delivery cost is #1,000
EVERY BUYER IS EXPECTED TO PAY FOR THE DOCUMENTS OF THE VEHICLES BEFORE THE DELIVERY WILL COMMENCE!!!!WE DELIVER NATION WIDE NOTICE INSTALLMENTAL PAYMENT IS ALLOWED!!! ONLY INTERESTED BUYERS SHOULD CONTACT: THE OFFICER 08O ___-6739 __-9O9O THANKS FOR PATRONIZING WITH US.!!.〽.〽.〽.〽.〽.〽.〽.〽.〽.〽.〽.〽.〽.〽.〽.〽.〽.〽.〽.〽.〽.〽