Strikes at U.S. ports along the East Coast and Gulf Coast have been called off after a tentative agreement on a new six-year master contract between the International Longshoremen's Association (ILA) and the US Maritime Alliance (USMX). Experts have said this could impact shipping rates for the better.

The strikes, originally planned for Jan. 15, would have shut down ports from Maine to Texas, disrupting the crucial flow of goods.

Avoiding these strikes is good news for the Port of Virginia, a key East Coast shipping hub, Port Strategy reported.

Had the strikes gone ahead, freight rates were expected to rise further. Rates had already increased 26% since mid-December, according to freight intelligence platform Xeneta. 

Ocean container freight from Asia to the U.S. East Coast was projected to climb even higher, with potential disruption surcharges of up to $3,000 per container.

"The agreement between the ILA and USMX is welcome, as a strike could have been a supply chain and economic disaster," said Xeneta senior shipping analyst Emily Stausbøll. However, she noted that shippers face ongoing challenges in the unpredictable freight market.

Looking ahead, Stausbøll anticipated spot rate growth will now soften on trades into the U.S. from Asia, providing a brighter outlook for shippers negotiating new long-term contracts. But she cautioned that global supply chain risks remain high, citing potential escalation in geopolitical tensions.