Nearly $5bn has been wiped off the value of the biggest listed container shipping companies after a deal was reached to avert a strike at US ports that would have driven up prices. The union representing about 45,000 dockworkers announced in a joint statement with employers on Wednesday that a “tentative agreement” had been agreed to prevent a shutdown that was planned to start next week.
That strike was suspended after the International Longshoremen’s Association reached an agreement with the United States Maritime Alliance , which represents port and ship owners, to extend an employment contract until January 15. The deal included a 62 per cent raise over the course of a new six-year contract, the ILA said. But the union and employers remained in dispute about automation in ports, raising the prospect of another strike.