Adds comments from White House, retail industry.
Unionized port workers and operators of US east and Gulf coast ports and terminals have reached a tentative agreement on a new work contract, averting a strike that would have started next week.
The International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) said the new six-year contract still needs to be reviewed and approved by members of both sides before it will be ratified. They have agreed to continue to operate under the current contract until the agreement is finalized.
"This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coasts ports — making them safer and more efficient and creating the capacity they need to keep our supply chains strong," the ILA and USMX said in a joint statement.
US president Joe Biden praised the deal, saying it shows both sides can settle their differences to benefit workers and their employers.
"I applaud the dockworkers' union for delivering a strong contract," Biden said. "Their members kept our ports open during the pandemic, as we worked together to unsnarl global supply chains."
The National Retail Federation (NRF) also lauded the deal after the group signed a letter last month urging the parties to resume negotiations.
"Providing certainty with a new contract and avoiding further disruptions is paramount to ensure retail goods arrive in a timely manner for consumers," said Jonathan Gold, the NRF's vice president of supply chain and customs policy.
Details of the agreement will not be released until after members have had time review and approve the deal, ILA and USMX said.
The current contract was set to expire on 15 January after the parties struck a temporary agreement to end a three-day port strike in October 2024.
