U.S. longshoremen reached a contract agreement with ports and shippers Wednesday, averting a potential strike that could have damaged the American economy.

The International Longshoremen's Association union and the U.S. Maritime Alliance of ports and shipping companies said they had reached a tentative agreement for a six-year contract. The two sides had been facing a Jan. 15 deadline.

Union members and alliance members must still ratify the agreement. Until then, the existing contract will continue to be in effect.

“We are pleased to announce that ILA and USMX have reached a tentative agreement on a new six-year ILA-USMX Master Contract, subject to ratification, thus averting any work stoppage on January 15, 2025,” the two sides said in a joint statement. “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.

“This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace.”