After days of disruption at major U.S. ports, the International Longshoremen’s Association (ILA) and the management group representing shipping lines, terminal operators and port authorities have reached a tentative deal on wages, two sources told CNN on Oct. 3.
While the final contract has not yet been ratified by the workers represented by the ILA, the strike, which halted the flow of imports and exports across the country, is expected to end Oct. 4 as union members return to work.
The two sides have agreed to extend the expired contract until Jan. 15, allowing more time to work out the remaining details and finalize the agreement, one of the sources revealed.
The strike, which began early Oct. 1, involved approximately 50,000 union members working at ports from Maine to Texas. Their work stoppage had a significant impact on the movement of containerized goods, affecting both U.S. imports and exports. The disruption has strained supply chains, delaying the operations of businesses dependent on overseas shipments.
The ILA had been in negotiations over wages and other terms since the previous contract expired Sept. 30. The tentative deal is seen as a critical step toward preventing prolonged economic fallout.
As details of the agreement continue to be finalized, port authorities and businesses alike are optimistic that the strike's end will restore normal operations before the holiday season, when port activity typically surges.
