The union that has closed port terminals across a swathe of the US coastline and threatened to cripple supply chains has reached a tentative deal with employers that will send dockworkers back to their posts.

The International Longshoremen’s Association and the employers’ group covering vehicle and container ports on the US Atlantic Seaboard and Gulf Coast said the tentative agreement on wages comes with an extension of their existing contract until 15 January.

They also agreed to return to the bargaining table to negotiate other outstanding issues, the ILA and US Maritime Alliance (USMX) said.

“Effective immediately, all current job actions will cease, and all work covered by the master contract will resume,” they said.

The strike, which started on Tuesday, halted container ship and ro-ro operations across dozens of ports, displayed union power in a way that had not been seen in years, stoked fears of supply chain woes and even sent some panic buyers to snap up toilet paper from supermarket shelves — even though most US toilet paper is not imported.

US President Joe Biden, who had urged the USMX to raise wages and refused to use his power to stop the strike, applauded the deal.

“Today’s tentative agreement on a record wage and an extension of the collective bargaining process represents critical progress towards a strong contract,” he said.

“I congratulate the dockworkers from the ILA, who deserve a strong contract after sacrificing so much to keep our ports open during the pandemic. And I applaud the port operators and carriers who are members of the US Maritime Alliance for working hard and putting a strong offer on the table.”

Hurricane needs

He said the two sides ultimately acted patriotically because resuming port operations would ensure the availability of critical supplies after Hurricane Helene slammed a swathe of the southern US.

Earlier in the day, the political wrangling over the strikes took on a new dimension, as Florida governor Ron DeSantis, a one-time candidate for the Republican ticket who has since kissed the ring of former US president Donald Trump, threatened to deploy state authorities to four ports impacted by the strike.

US President Joe Biden speaks at the Port of Los Angeles in 2022. Photo: Port of Los Angeles

Among the actions, he said the Florida National Guard and State Guard would be brought in, where possible, reopen to Port Everglades in Fort Lauderdale, Port Miami, Port Tampa Bay and Jaxport in Jacksonville.

“Disrupting the distribution of food, equipment, and supplies as the south-east US recovers from Hurricane Helene is unacceptable,” DeSantis said. “Floridians need a reliable, steady supply of resources and building materials to keep their families fed and rebuild their homes and businesses.”

Ports have begun taking steps to reopen.

The Georgia Ports Authority, whose jurisdiction includes the major container port at Savannah and the major ro-ro facility at Brunswick, said operations would start Friday morning.

Port Houston said it would open its gates in the early afternoon.

Sources told broadcaster CNN that the ILA and USMX agreed to a $4-per-hour wage hike per year for six years, ultimately leading to a 62% increase over the contract.

The union had been holding out for a 77% pay increase, while employers had offered 50% on the eve of the strike.

National Retail Federation chief executive Matthew Shay, whose organisation led trade associations in calling on Biden to take executive action to halt the strikes, said the tentative deal is good news for the US economy.

“It is critically important that the International Longshoremen’s Association and United States Maritime Alliance work diligently and in good faith to reach a fair, final agreement before the extension expires,” he said in a statement.

“The sooner they reach a deal, the better for all American families.”