UNITED STATES - Yesterday we reported that approximately 45 container vessels had anchored outside the East Coast and Gulf Coast ports due to the port strike initiated on October 1. Today reports have revealed that the U.S. East Coast and Gulf Coast ports have been reopened after dockworkers and port operators reached a wage deal to settle the strike.

"The port strike ended fairly quickly, removing any significant downside risk to the economy this quarter," said Ryan Sweet, Chief U.S. Economist at Oxford Economics, in a report from Reuters.

The International Longshoremen's Association workers union and United States Maritime Alliance (USMX) port operators announced the deal late on Thursday, announcing an agreed-upon wage hike of around 62 percent over six years. This move will raise average wages to about $63 an hour from $39 an hour, the source noted.

While the ports have reopened as of today, clearing the cargo backlog will still take some time. Yesterday, at least 54 container ships had lined up outside the ports as the strike prevented unloading, posing potential shortages of a variety of goods ranging from bananas to auto parts.

According to pricing platform Xeneta, it was likely to take two to three weeks for the normal flow of goods to be reestablished.

ANUK will continue to relay the latest information regarding our industry’s supply chain. Stay tuned for our next update.