On Thursday, the longshoremen strike ended, as a tentative agreement on wages was reached between a prominent union representing dockworkers in the United States and the United States Maritime Alliance. To allow for negotiations on a new contract, the existing contract has been extended until January 15, 2025.

The resolution brings a temporary end to a longshoremen strike that had caused significant disruptions at ports along the East Coast and Gulf Coast since the start of the week, posing a risk to the availability of fruits, automobiles, and various other commodities in the United States.

Longshoremen Strike suspended

The joint statement was issued by the International Longshoremen’s Association and the United States Maritime Alliance.

“The International Longshoremen’s Association and the United States Maritime Alliance, Ltd. have reached a tentative agreement on wages and have agreed to extend the Master Contract until January 15, 2025 to return to the bargaining table to negotiate all other outstanding issues,”

The U.S. supply chain was already experiencing strain from the strike throughout the week because of the longshoremen strike. As reported by CNBC earlier, numerous containers were incorrectly unloaded at different ports, resulting in billions of dollars worth of goods being stuck at sea due to non-operational ports. Additionally, shipping costs were already on the rise.

The longshoremen strike, which affected 14 ports including the longshoremen strike in Charleston, S.C., was the first of its kind since 1977.

About 50,000 of the union’s 85,000 members were on strike this week.

ILA President Harold Daggett stated on Tuesday that the union is requesting a raise of $5 per hour for each year of the six-year agreement.

Sources have informed CNBC’s Lori Ann LaRocco that there will be a 61.5% wage increase over a period of six years as part of the tentative agreement for ILU.

A central conflict over port automation is still under negotiation.