By Lisa Baertlein

(Reuters) -The union representing 45,000 dock employees on the U.S. East and Gulf Coasts and their employers on Wednesday mentioned they reached a tentative deal on a brand new six-year contract, averting additional strikes that might have snarled provide chains and brought a toll on the U.S. economic system.

The Worldwide Longshoremen’s Affiliation (ILA) and the USA Maritime Alliance (USMX) employer group, in a joint assertion, referred to as the settlement a “win-win.” The deal features a decision in automation, which had been the thorniest situation of on the desk.

“This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coast ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong,” the teams mentioned.

Phrases of the deal weren’t disclosed. ILA and USMX have agreed to proceed working beneath the present contract till the contract is ratified.

The talks had been prolonged till Jan. 15 to hammer a deal on automation. Transport trade executives, prospects and analysts had been involved that the events could be unable to beat their deadlock, resulting in a second ILA strike simply days earlier than President-elect Donald Trump’s Jan. 20 inauguration.

A 3-day ILA strike in October had triggered a surge in delivery costs and cargo backlogs on the 36 affected ports. Longshoremen returned to work after employers agreed to a 62% wage enhance over the subsequent six years.

Employers on the ports stretching from Maine to Texas embody terminal operators like APM, owned by Danish container service Maersk, in addition to the U.S. arms of different main carriers like China’s COSCO Transport and Switzerland’s MSC.

The Nationwide Retail (NYSE:) Federation, which represents main prospects like Walmart (NYSE:) and Goal (NYSE:), mentioned the settlement ought to carry certainty again to ocean delivery by lowering the danger of disruptions at East and Gulf Coast ports that deal with greater than half of U.S. container imports.

“The agreement will also pave the way for much-needed modernization efforts, which are essential for future growth at these ports and the overall resiliency of our nation’s supply chain,” mentioned Jonathan Gold, NRF’s vp of provide chain and customs coverage.