Bloomberg Audio Studios, Podcasts, radio news from Bloomberg World Headquarters in New York. I'm Doug Prisoner, and we begin with this breaking news. The union representing striking US dock workers at East and Gulf Coast ports has reached a deal to suspend its strike until January fifteenth. Let's get a closer look now with Bloomberg's Kate Davidson, Managing editor for US ECO Policy, joining us from Washington, d C. Thanks for making time, Kate. As I understand it, both sides have reached a tentative agreement on wages, right, although this is step one and trying to get to a new six year contract, right, that's right.

Bloomberg Audio Studios, Podcasts, radio news from Bloomberg World Headquarters in New York. I'm Doug Prisoner, and we begin with this breaking news. The union representing striking US dock workers at East and Gulf Coast ports has reached a deal to suspend its strike until January fifteenth. Let's get a closer look now with Bloomberg's Kate Davidson, Managing editor for US ECO Policy, joining us from Washington, d C. Thanks for making time, Kate. As I understand it, both sides have reached a tentative agreement on wages, right, although this is step one and trying to get to a new six year contract, right, that's right.

I mean, one of the bigger issues that was really holding up an agreement here had to do with automation. The union workers or some forty seven thousand dock workers at these ports, you know, stretching from Houston to Miami to Boston. One of the things that they wanted, we're greater protections against the kind of automation that we've seen at ports on the West coast, and so that was a real sticking point. This tentative agreement doesn't address that, but it does go some way toward addressing some of the wage demands. So they've agreed, as you said, to a temporary deal that would at least allow them to start moving cargo again. And that was under some you know, fairly intense pressure from the White House, I think, over the past few days. And so we in the meantime between now and January fifteenth, I have to keep working on that broader contract agreement.

I mean, one of the bigger issues that was really holding up an agreement here had to do with automation. The union workers or some forty seven thousand dock workers at these ports, you know, stretching from Houston to Miami to Boston. One of the things that they wanted, we're greater protections against the kind of automation that we've seen at ports on the West coast, and so that was a real sticking point. This tentative agreement doesn't address that, but it does go some way toward addressing some of the wage demands. So they've agreed, as you said, to a temporary deal that would at least allow them to start moving cargo again. And that was under some you know, fairly intense pressure from the White House, I think, over the past few days. And so we in the meantime between now and January fifteenth, I have to keep working on that broader contract agreement.

So will work us be back on the docks tomorrow?

So will work us be back on the docks tomorrow?

That's certainly what it sounds like. You know, the International Longshoreman's Association said it had agreed to extend the contract and said work will resume. So I don't think we know the exact details. We know that they've sort of began slowing down operations on Monday ahead of the midnight deadline, so imagine it will take them a little bit of time to get things up and running. But yeah, I think that I think that some of those dozens of ships that we've seen that are now anchored off to these ports where we'll start getting moving again.

That's certainly what it sounds like. You know, the International Longshoreman's Association said it had agreed to extend the contract and said work will resume. So I don't think we know the exact details. We know that they've sort of began slowing down operations on Monday ahead of the midnight deadline, so imagine it will take them a little bit of time to get things up and running. But yeah, I think that I think that some of those dozens of ships that we've seen that are now anchored off to these ports where we'll start getting moving again.

Yeah, give me a sense of scale, what does that look like? Hard to imagine how many cargo vessels are involved.

Yeah, give me a sense of scale, what does that look like? Hard to imagine how many cargo vessels are involved.

Yeah, so we know that it had gone that we had seen those numbers and then ticking up over the last few days. Since just since Monday, I think there was something like nineteen ships that were just waiting off the off the coast of some of these ports, and as of this morning, I think the latest CALLI was up up to forty three or so. So obviously they're just unloading many, many, many, many containers of goods. I mean, these are these are cars, these are you know, clothing, it's auto parts, it's fresh fruit, all of these things. I mean that some of the estimates that we saw for that their lost economic activity was as much as a billion to five billion dollars a day.

Yeah, so we know that it had gone that we had seen those numbers and then ticking up over the last few days. Since just since Monday, I think there was something like nineteen ships that were just waiting off the off the coast of some of these ports, and as of this morning, I think the latest CALLI was up up to forty three or so. So obviously they're just unloading many, many, many, many containers of goods. I mean, these are these are cars, these are you know, clothing, it's auto parts, it's fresh fruit, all of these things. I mean that some of the estimates that we saw for that their lost economic activity was as much as a billion to five billion dollars a day.

Was it already beginning to impact to the way that cargo is priced.

Was it already beginning to impact to the way that cargo is priced.

So it's interesting there was some debate about that because it looked like some of the prices had gone up a bit. But we were starting to hear some claims from some of the union voices and their allies that the shipping companies, the shipping lines were price gouging. We saw the White House warning them against this. There were some pretty high figures being tossed out there, and some of these shipping lines pushed back on that they said that the prices were not going as high as some people were saying. Oh, they called it misinformation. So certainly there was starting to be some impact, but nothing major and certainly not to the highs that we saw during the pandemic supply chain crunch.

So it's interesting there was some debate about that because it looked like some of the prices had gone up a bit. But we were starting to hear some claims from some of the union voices and their allies that the shipping companies, the shipping lines were price gouging. We saw the White House warning them against this. There were some pretty high figures being tossed out there, and some of these shipping lines pushed back on that they said that the prices were not going as high as some people were saying. Oh, they called it misinformation. So certainly there was starting to be some impact, but nothing major and certainly not to the highs that we saw during the pandemic supply chain crunch.

When we think about the approaching holidays fourth quarter, this is a critical time right for moving cargo. Do we know that supply chain problems have been alleviated up until this point.

When we think about the approaching holidays fourth quarter, this is a critical time right for moving cargo. Do we know that supply chain problems have been alleviated up until this point.

Yes, So it seems as though, you know, a lot of the companies involved had gotten much better some of the issues that we did see during the pandemic, and they're much better prepared. The conversations around this potential strike and these negotiations that had stalled back in June were pretty well known, and we had started to see companies importing a lot more. We saw them stockpiling inventories because of this issue and also in anticipation of potentially higher tariffs that they were sort of bracing for later in the year or if next year, if there's a change in the administration in the White House of President former President Trump comes back in. We were starting to get a sense that companies were preparing for this a little bit so, I think that the retailers had taken some steps in are likely pretty well positioned. There shouldn't be a major impact, but I think we will find out more details over the coming week.

Yes, So it seems as though, you know, a lot of the companies involved had gotten much better some of the issues that we did see during the pandemic, and they're much better prepared. The conversations around this potential strike and these negotiations that had stalled back in June were pretty well known, and we had started to see companies importing a lot more. We saw them stockpiling inventories because of this issue and also in anticipation of potentially higher tariffs that they were sort of bracing for later in the year or if next year, if there's a change in the administration in the White House of President former President Trump comes back in. We were starting to get a sense that companies were preparing for this a little bit so, I think that the retailers had taken some steps in are likely pretty well positioned. There shouldn't be a major impact, but I think we will find out more details over the coming week.

Kate, thanks so much for joining us a Bloomberg's Kate Davidson, Managing editor of US Eco Policy, helping us understand our breaking story the union representing striking US stock workers at East and Gulf Coast ports reaching a deal to suspend to strike until January fifteenth,

Kate, thanks so much for joining us a Bloomberg's Kate Davidson, Managing editor of US Eco Policy, helping us understand our breaking story the union representing striking US stock workers at East and Gulf Coast ports reaching a deal to suspend to strike until January fifteenth,