$13 billion HVAC disruption averted in port deal

An agreement between the U.S. Maritime Alliance and the union representing dockworkers was reached Wednesday night, preventing a port strike that threatened U.S. supply chains.

Why it matters: The ports involved include eight of the top ten entry points for refrigerants into the U.S. and handle roughly $13 billion worth of HVAC parts and equipment, according to HARDI. 

Catch up: Dockworkers at East and Gulf Coast ports on October 1 went on strike over wage and automation disputes — the first East Coast strike since 1977.

• A few days later, the Maritime Alliance, which represents shipping companies, agreed to raise dockworkers’ wages by 62 percent over the next six years. 
• Workers returned to their jobs, and the groups set a January 15 deadline to resolve the remaining issues, including automation. 

The bottom line: Wednesday’s agreement prevents a second strike that many expected to start next week without a deal by January 15.