The International Longshoremen’s Association (ILA) strike, a potential threat to the US economy, was resolved within three days, causing minimal disruption to supply chains. The ILA, representing 50,000 workers at the United States Maritime Alliance (USMX), returned to work after an agreement was reached on wage increases, a key point of contention.

The strike had raised concerns about supply chain disruptions and potential shortages of consumer goods and supplies essential for US factories. However, its brief duration, along with shippers' advanced preparations, limited the economic impact. Many had moved their goods through the ports ahead of the strike's start on Tuesday, a deadline that had been anticipated for months.

The USMX agreed to an immediate wage increase of $4 per hour, raising the base pay to $43 per hour—a more than 10% increase. Additionally, union members will receive $4-per-hour raises annually over the six-year deal, culminating in a total pay increase of $24 per hour, or 62%.

ILA's leadership had been open to the $4-per-hour increase before the strike, but they rejected the company's initial $3-per-hour offer. The quick resolution on Thursday led to the end of the strike, which was the first since 1977.

Both parties were eager to resume work, with ships waiting to dock along the East and Gulf Coasts, from Maine to Texas. The workers, who were unpaid and without strike benefits during the walkout, were keen to limit their income loss.

To facilitate the negotiations on the remaining contract details, the strike was suspended, and the previous contract was extended to January 15. Despite this, it will take time for port operations to normalize. Logistics experts estimate a recovery period of three to five days for each day the ports were closed.

The Port of New York and New Jersey, the nation's third-largest by cargo volume, along with the Port of Virginia, announced that they would keep their gates closed to trucks on Friday as they work to move containers around their grounds. Trucks will be allowed entry starting Saturday, and other ports are considering extended weekend hours to address the backlog.

The strike's timing did not affect hurricane recovery efforts significantly, as all ships involved were foreign-owned and not permitted to transport goods between US ports under US maritime law.

Bethann Rooney, the port's director, estimated the Port Authority of New York and New Jersey lost between $250-300 million per day during the strike, amounting to approximately $1 billion for four days of inactivity. As of Friday morning, 24 ships were waiting to dock at the Port of New York and New Jersey, carrying 35,000 import containers of consumer goods, with an additional 35,000 containers on inbound ships.

While the threat of the strike has subsided for now, the final contract language must be ratified by the union members. If they reject the deal, the possibility of a new strike looms. Such rejections are not uncommon, as seen recently when the International Association of Machinists rejected a tentative deal with Boeing, despite leadership's recommendation.