The International Longshoremen’s Association has reached a deal with the US Maritime Alliance to suspend the first East Coast and Gulf Coast strike since 1977.

The union, which represents 45,000 dockworkers, has agreed to resume working until 15th January to provide both sides time to negotiate a new six-year contract with the US Maritime Alliance.

The strike began on Tuesday, as workers formed picket lines following the expiration of their existing contract, hitting 36 ports which handle around half of the ocean freight coming into and out of the United States, as they demanded higher wages and a ban on automated equipment.

“The International Longshoremen’s Association and the United States Maritime Alliance have agreed to extend the Master Contract until 15th January 2025 to return to the bargaining table to negotiate all other outstanding issues. Effective immediately, all current job actions will cease and all work covered by the Master Contract will resume,” the union said in a statement.

Workers are expected to be back at work as early as Friday morning, quelling fears of widespread disruption to global supply chains ahead of peak season and a spike in inflation amid a shortage of some goods.

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