Dockworkers working at America’s major ports on the Atlantic and Gulf Coasts have reached a tentative agreement on wages to settle the industry’s biggest work stoppage in nearly half a century. Now the focus shifts to the ports’ efficiency in restoring the normal flow of goods. CMA CGM, the French shipping and logistics group, reported on Friday October 4 that vessels currently waiting off terminals will berth and be operated on a “First In First Out” basis.

The International Longshoremen’s Association (ILA) said in a statement that they have reached a tentative agreement on wages with the United States Maritime Alliance, Ltd. and have agreed to extend the Master Contract until January 15, 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 statement said.

The deal ends the biggest work stoppage of its kind in nearly half a century, which blocked unloading of container ships from Maine to Texas and threatened shortages in some imported items, triggering a backlog of anchored ships outside major ports.

The port strike was still in its early days, but it would have had broad ramifications for the US economy the longer it continued.

Business groups had been calling on the Biden administration to order strikers back to work. White House officials had calculated that, if the strike lasted longer than two weeks, the work stoppage and slowdown of commerce could have had an impact on the October jobs data and America’s economic growth, which would have been felt by consumers when they were headed to the polls.

The industrial action was launched on Tuesday October 1 as the dock workers’ contract ended without an agreement on a new deal. The strikes threatened to cause chaos to US supply chains as ports on the Atlantic and Gulf Coasts were forced to shutter.

President Joe Biden praised the agreement in a statement released by the White House moments after the agreement was announced.

“I want to thank the union workers, the carriers, and the port operators for acting patriotically to reopen our ports and ensure the availability of critical supplies for Hurricane Helene recovery and rebuilding,” Biden said. “Collective bargaining works, and it is critical to building a stronger economy from the middle out and the bottom up.”

The news on ILA and USMX Agreement was welcomed by Vice President Kamala Harris.

“Tonight the International Longshoremen’s Association (ILA) and the United States Maritime Alliance came together to reach a tentative agreement that reopens the East Coast and Gulf ports, and I want to applaud all involved for their efforts. Dockworkers deserve a fair share for their hard work getting essential goods out to communities across America,” Kamala Harris said.