Container Freight Rates Could Fall as US Port Strikes Averted

Photo: Avigator Fortuner/Shutterstock

A strike at US ports has been averted after the International Longshore Workers Association (ILA), which represents port workers, and the United Maritime Union (USMX) reached a preliminary agreement on a new six-year master contract.

Strikes scheduled to take place at US East and Gulf coast ports from January 15, which could have caused an economic and supply chain crisis, have been officially canceled. This is expected to slow or reduce the rate of increase in container shipping rates.

If the strikes had taken place, ports from Maine to Texas would have been forced to close. However, with the new agreement reached between the ILA and USMX, this situation has been resolved satisfactorily.

Data from Xeneta-a platform that provides ocean and air freight intelligence-shows that average spot rates from the Far East to the US East Coast have increased by 26% since December 14. If a strike occurs, those rates are expected to rise even higher.

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Source: Phaata.com (via TheLoadStar)

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