East Coast dock management and labor have reached a preliminary agreement to avoid a second port strike.

A union representing 45,000 dockworkers along the US East Coast and Gulf of Mexico coast and their employers announced on Wednesday that they have reached a preliminary agreement on a new six-year contract, averting further strikes that could disrupt the supply chain and damage the US economy. The International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) employer group said in a joint statement that the agreement is a "win-win" situation. The agreement includes addressing automation issues, which have been a contentious topic at the negotiation table. "These organizations stated, 'The agreement protects current employment for the ILA and establishes a framework for the implementation of technologies that will create additional job opportunities while modernizing the East Coast and Gulf of Mexico ports to make them safer, more efficient, and create the capacity they need to maintain the strength of our supply chain.'" The terms of the agreement have not been disclosed. ILA and USMX have agreed to continue operating under the current contract until the new one is approved. Negotiations have been extended until January 15 to reach an agreement on automation. Shipping industry executives, customers, and analysts have been concerned that the deadlock would not be resolved, leading to a second ILA strike just days before President-elect Trump's inauguration on January 20. Last October, a three-day ILA strike caused shipping prices to soar and goods to pile up at 36 affected ports. Dockworkers returned to their jobs after employers agreed to a 62% pay increase over the next six years. Employers at ports from Maine to Texas include terminal operators under Denmark container shipping company Maersk Group's APM, as well as other major shipping companies' US subsidiaries like COSCO Shipping Holdings and Swiss MSC. The National Retail Federation (NRF), representing major clients such as Walmart Inc. and Target Corporation, stated that the agreement will bring certainty to maritime shipping by reducing the risk of disruptions at East Coast and Gulf of Mexico ports, which handle over half of the US container imports. NRF Vice President of Supply Chain and Customs Policy Jonathan Gold said, "This agreement also paves the way for much-needed modernization efforts, critical to the future resilience of these ports and the overall flexibility of our national supply chain."