The strike's resolution, marked by a wage increase of approximately 62% over six years for dockworkers, comes as ports on the U.S. East and Gulf coasts begin to reopen. Although this ends the biggest work stoppage in decades, it’s expected that clearing the current backlog of cargo will take a significant amount of time, with at least 54 container ships waiting to be unloaded.
According to Xeneta Chief Analyst Peter Sand, restoring the normal flow of goods may take two to three weeks, noting that the process will require addressing both the ships currently queued and those arriving. "Remember that ships keep calling, so it's not just a matter of handling the ships already in line, but to work extra hard to run down the congestion before supply chains are re-running," he expressed.
Experts indicated that as the strike concluded earlier than anticipated, shipping stocks across Asia fell sharply. Investors had initially expected prices to surge due to the strike, but with an agreement in place, Asian shipping stocks, which had rallied previously, saw significant losses. Analysts from Taishin Securities highlighted that stocks like Nippon Yusen and Hapag-Lloyd faced notable declines as market conditions shifted rapidly.
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