East Coast Port Strike Averted (for now)
The negotiating parties for the Carriers and the ILA have reached an agreement this morning to extend the current contract deadline from 12/29 for an additional 30 days. The agreement to extend the deadline was reached with consideration to the fact that some local matters in Northeast ports, and the general matter of Container Royalties remain the only significant open items of negotiation.
This development will have an immediate positive effect for US exports, however the 30 day extension will still complicate planning for imports from origins with longer all-water transits such as Asia which could still be effected by the revised contract deadline date. It is expected but not confirmed that the implementation of items such as the Port Congestion surcharge shall also be shifted to meet the revised deadline.