The International Longshoremen’s Association is suspending its three-day strike until Jan. 15 to provide time to negotiate a new contract. Photo from Port Houston

Some 45,000 dockworkers at East and Gulf coast ports are returning to work after their union reached a deal to suspend a strike that could have caused shortages and higher prices if it had dragged on.

The International Longshoremen’s Association is suspending its three-day strike until Jan. 15 to provide time to negotiate a new contract. The union and the U.S. Maritime Alliance, which represents ports and shipping companies, said in a joint statement that they have reached a tentative agreement on wages.

A person briefed on the agreement said the ports sweetened their wage offer from about 50% over six years to 62%. The person didn’t want to be identified because the agreement is tentative. Any wage increase would have to be approved by union members as part of the ratification of a final contract.

Talks now turn to the automation of ports, which the unions says will lead to fewer jobs, and other sticking points.

Industry analysts have said that for every day of a port strike it takes four to six days to recover. But they said a short strike of a few days probably wouldn’t gum up the supply chain too badly.

The settlement pushes the strike and any potential shortages past the November presidential election, eliminating a potential liability for Vice President Kamala Harris, the Democratic nominee. It’s also a big plus for the Biden-Harris administration, which has billed itself as the most union-friendly in American history. Shortages could have driven up prices and reignited inflation.

The union went on strike early Tuesday after its contract expired in a dispute over pay and the automation of tasks at 36 ports stretching from Maine to Texas. The strike came at the peak of the holiday season at the ports, which handle about half the cargo from ships coming into and out of the United States.

Most retailers had stocked up or shipped items early in anticipation of the strike.

“With the grace of God, and the goodwill of neighbors, it’s gonna hold,” President Joe Biden told reporters Thursday night after the agreement.

In a statement later, Biden applauded both sides “for acting patriotically to reopen our ports and ensure the availability of critical supplies for Hurricane Helene recovery and rebuilding.”

Biden said that collective bargaining is “critical to building a stronger economy from the middle out and the bottom up.”

The union's membership won't need to vote on the temporary suspension of the strike. Until Jan. 15, the workers will be covered under the old contract, which expired on Sept. 30.

The union had been demanding a 77% raise over six years, plus a complete ban on the use of automation at the ports, which members see as a threat to their jobs. Both sides also have been apart on the issues of pension contributions and the distribution of royalties paid on containers that are moved by workers.

Thomas Kohler, who teaches labor and employment law at Boston College, said the agreement to halt the strike means that the two sides are close to a final deal.

“I’m sure that if they weren’t going anywhere they wouldn’t have suspended (the strike),” he said. “They’ve got wages. They’ll work out the language on automation, and I’m sure that what this really means is it gives the parties time to sit down and get exactly the language they can both live with.”

Kohler said the surprise end to the strike may catch railroads with cars, engines and crews out of position. But railroads are likely to work quickly to fix that.

Just before the strike had begun, the Maritime Alliance said both sides had moved off their original wage offers, a tentative sign of progress.

Thursday's deal came after Biden administration officials met with foreign-owned shipping companies before dawn on Zoom, according to a person briefed on the day's events who asked not to be identified because the talks were private. The White House wanted to increase pressure to settle, emphasizing the responsibility to reopen the ports to help with recovery from Hurricane Helene, the person said.

Acting Labor Secretary Julie Su told them she could get the union to the bargaining table to extend the contract if the carriers made a higher wage offer. Chief of Staff Jeff Zients told the carriers they had to make an offer by the end of the day so a manmade strike wouldn't worsen a natural disaster, the person said.

By midday the Maritime Alliance members agreed to a large increase, bringing about the agreement, according to the person.

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AP Writers Darlene Superville and Josh Boak in Washington and Annie Mulligan in Houston contributed to this report.

Workers began walking picket lines early Tuesday in a strike over wages and automation, even though some progress had been reported in latest contract talks. Photo via Getty Images

Dockworkers in Texas, East Coast start strike with major economic, political consequences on the line

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From Maine to Texas, dockworkers at 36 ports across the eastern U.S. are now on strike for the first time in decades. And the work stoppage could snarl supply chains — leading to shortages and higher prices if it stretches on for more than a few weeks.

Workers began walking picket lines early Tuesday in a strike over wages and automation, even though some progress had been reported in latest contract talks. The contract between the ports and about 45,000 members of the International Longshoremen’s Association expired at midnight.

The strike also comes just weeks before next month's tight presidential election, and could become a factor if there are shortages impacting voters.

In early picketing, workers outside the Port of Philadelphia walked in a circle and chanted “No work without a fair contract.” The union, which is striking for the first time since 1977, had message boards on the side of a truck reading: “Automation Hurts Families: ILA Stands For Job Protection.”

Local ILA president Boise Butler said workers want a fair contract that doesn’t allow automation of their jobs.

Shipping companies made billions during the pandemic by charging high prices, he said. “Now we want them to pay back. They’re going to pay back,” Butler said.

He said the union will strike for as long as it needs to get a fair deal, and it has leverage over the companies.

“This is not something that you start and you stop,” he said. “We're not weak,” he added, pointing to the union's importance to the nation's economy.

At Port Houston, at least 50 workers started picketing around midnight local time carrying signs saying “No Work Without a Fair Contract."

The U.S. Maritime Alliance, which represents the ports, said Monday evening that both sides had moved off of their previous wage offers. But no deal was reached.

The union’s opening offer in the talks was for a 77% pay raise over the six-year life of the contract, with President Harold Daggett saying it’s necessary to make up for inflation and years of small raises. ILA members make a base salary of about $81,000 per year, but some can pull in over $200,000 annually with large amounts of overtime.

Monday evening, the alliance said it had increased its offer to 50% raises over six years, and it pledged to keep limits on automation in place from the old contract. The alliance also said its offer tripled employer contributions to retirement plans and strengthened health care options.

The union wants a complete ban on automation. It wasn’t clear just how far apart both sides are.

In a statement early Tuesday, the union said it rejected the alliance's latest proposal because it “fell far short of what ILA rank-and-file members are demanding in wages and protections against automation.” The two sides had not held formal negotiations since June.

Supply chain experts say consumers won’t see an immediate impact from the strike because most retailers stocked up on goods, moving ahead shipments of holiday gift items.

But if it goes more than a few weeks, a work stoppage could lead to higher prices and delays in goods reaching households and businesses.

If drawn out, the strike will force businesses to pay shippers for delays and cause some goods to arrive late for peak holiday shopping season — potentially impacting delivery of anything from toys and artificial Christmas trees to cars, coffee and fruit.

The strike will likely have an almost immediate impact on supplies of perishable imports like bananas, for example. The ports affected by the strike handle 3.8 million metric tons of bananas each year, or 75% of the nation’s supply, according to the American Farm Bureau Federation.

It also could snarl exports from East Coast ports and create traffic jams at ports on the West Coast, where workers are represented by a different union. Railroads say they can ramp up to carry more freight from the West Coast, but analysts say they can’t move enough to make up for the closed Eastern ports.

J.P. Morgan estimated that a strike that shuts down East and Gulf coast ports could cost the economy $3.8 billion to $4.5 billion per day, with some of that recovered over time after normal operations resume.

Retailers, auto parts suppliers and produce importers had hoped for a settlement or that President Joe Biden would intervene and end the strike using the Taft-Hartley Act, which allows him to seek an 80-day cooling off period.

But during a Sunday exchange with reporters, Biden, who has worked to court union votes for Democrats, said “no” when asked if he planned to intervene in the potential work stoppage.

In an update Tuesday morning, the White House maintained that administration officials were working “around the clock” to help negotiations move forward — which included being in direct contact with both USMX and ILA. Biden and Vice President Kamala Harris were also “closely monitoring” potential supply chain impacts, the White House added, enlisting a task force to meet daily and prepare for any disruptions.

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Krisher in reported from Detroit. Associated Press journalists Ben Finley in Norfolk, Virginia, Mae Anderson and Wyatte Grantham-Philips in New York, Dee-Ann Durbin in Detroit, Josh Boak in Washington, and Annie Mulligan in Houston contributed to this report.

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Houston subsea firm Zupt acquired in offshore tech deal

m&a activity

Houston-based Zupt LLC, a provider of advanced metrology, inspection, and engineering services for offshore energy and renewable projects, has been acquired by Columbus, Ohio-based Rosenxt Holding USA for an undisclosed amount.

Rosenxt says the deal, which closed July 21, represents another step in its long-term strategy to build a portfolio of technology and engineering capabilities for the subsea market in the energy sector.

“Our ambition has always been to think decades ahead,” Hermann Rosen, chairman of Switzerland-based Rosenxt Group, the parent company of Rosenxt Holding USA, said in a news release.

“The future of subsea and offshore industries will be shaped by intelligent technologies that fundamentally change how critical infrastructure is explored, installed, inspected and operated,” he added. “Zupt is another important building block in this vision.”

Rosenxt says offshore operators and installation contractors face pressure to execute subsea projects more efficiently amid workforce shortages, weather concerns, tougher safety standards, and rising capital and operating expenses.

“The offshore sector continues to embrace technologies that enhance data quality, reduce operational risk, and improve decision-making across the asset lifecycle,” Houston M&A attorney Amelia Zhang, who led law firm Norton Rose Fulbright’s representation of Zupt, added in the release.

Rosenxt provides services for the subsea market that combine sensing, robotics, AI, analytics and engineering. Zupt complements those services with offerings for operations, such as high-resolution 3D inspection, digital twin generation, and inspection and engineering technologies for subs.

Zupt President Keith Vickery founded the company in 2005.

Vickery says Zupt “has focused on solving some of the subsea industry’s most demanding marine construction and inspection challenges through innovative engineering, operational experience, and close collaboration with our customers.”

Mordor Intelligence estimates the value of the subsea market will climb from $19.75 billion this year to $25.03 billion in 2031. North America represents the largest segment of the global market.

Houston energy tech company Molecule makes gas operations acquisition

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Houston-based energy trading risk management (ETRM) software company Molecule has announced the acquisition of Dallas-based Trilogy Energy Solutions.

Molecule CEO Patrick Smith called the deal a "defining moment" for the company, as it allows Molecule's platform to expand to include physical gas operations.

“For years, this industry has drawn the ETRM box too small, creating inefficient silos by treating trading and physical operations as separate budgets and separate problems, when the real cost lives in the handoffs between them," Smith said in a news release. "Trilogy’s domain expertise in physical gas operations closes that gap. Together, we can give producers, midstream operators, and trading desks something the market has been asking for: a single, integrated view from wellhead to trading desk, without the manual reconciliation, spreadsheet workarounds, and legacy handoffs that slow the industry down.”

Trilogy, founded in 2014, is a provider of cloud-based software for the day-to-day logistics of physical natural gas operations. The platform allows users—including producers, marketers, midstream companies, pipeline operators and others—to manage activities such as pipeline nominations, gas gathering operations and more. Thus far, Molecule's platform has focused on energy trading and managing financial and commercial activities.

Through the acquisition, the combined company will now offer a full-stack enabled ETRM and energy operating system. Users of both platforms can expect continuity of service, according to the companies.

“Molecule has always been about meeting trading teams where they actually work, focused on being fast, accurate, and deeply integrated into their day-to-day workflow,” Sameer Soleja, founder and president of Molecule, added in the release. “Bringing Trilogy into the Molecule family extends that mission from the trading desk into the physical operations of the gas business. The two platforms complement each other exceedingly well, and the combined product will be able to offer all-in-one capabilities that lead the ETRM market, both in its tech-forward nature, and in its depth.”

Molecule expects the combined platform to help users reduce manual month-end close work, cut costs, and improve data accuracy and decision-making.

Trilogy's Chief Product Officer Jeremy Frye will join the Molecule team, along with others from Trilogy.

“Trilogy has spent decades building the trust of companies across the physical natural gas industry by delivering software that stands up to the demands of physical gas operations... It’s a rare combination that brings the best of both worlds, and I’m energized about what our teams will build together,” Frye added in the release.

California-based Sundance Growth, an existing investor in Molecule, supported the acquisition. The software growth equity firm raised a $125 million debut fund in 2025 and focuses on B2B SaaS companies.

Sundance led Molecule's Series B round, which closed last summer for an undisclosed amount. At the time, Soleja said the funding would allow Molecule to "double down on product innovation, grow our team, and reach even more markets."