Major U.S. Port Strike Resolves, Freight Backlog Looms

East Coast and Gulf Coast ports resumed operations following a wage agreement ending the largest U.S. dockworkers' strike in nearly 50 years. The resolution impacted shipping stocks across Asia, with expectations of rising freight rates halting. Retailers like Walmart heavily rely on these ports for imports.

The East and Gulf Coast ports in the U.S. have reopened after dockworkers and port operators reached a wage agreement, ending the biggest work stoppage in nearly 50 years. This resolution is expected to gradually clear the cargo backlog, though the process will take time.

As a result of the strike's swift conclusion, shipping stocks across Asia dipped on Friday, as investors' expectations of surging freight rates were tempered. The market had anticipated continued disruptions. The International Longshoremen's Association and the United States Maritime Alliance announced a 62% wage increase over six years.

The strike affected 36 ports, stopping the flow of goods for three days and potentially costing the U.S. economy about $5 billion per day. The immediate agreement ends the current crisis, allowing major retailers, who depend heavily on these ports, to resume their supply chains.

(With inputs from agencies.)