A month ago, Harold Daggett, the president and chief negotiator of the International Longshoremen’s Association (ILA), warned that he “will cripple you” by launching a port strike. North America’s largest union, totaling 85,000 maritime workers, followed through on its threat, hitting the picket lines and shutting down trade at midnight on Oct. 1 for the first time in nearly 50 years. A provisional agreement was reached on the third day of labor action, averting a significant disaster for the US economy.

Officials representing the longshoremen and the United States Maritime Alliance (USMX) reached a tentative agreement on wages. The deal extends the current Master Contract until January 15, allowing both sides to return to the negotiating table and establish a new contract. All job action was immediately halted, and tens of thousands of workers headed back to the ports on Oct. 4.

“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 two organizations said in a joint statement.

The White House welcomed the news, applauding all the parties involved during the labor dispute. President Joe Biden called the announcement a sign of “critical progress towards a strong contract” and congratulated the ILA dockworkers who “deserve” a solid contract “after sacrificing so much to keep our ports open during the pandemic.”

“This step indicates progress toward a strong contract and represents the power of collective bargaining,” Vice President Kamala Harris said in a statement. “As I have said, this is about fairness – and our economy works best when workers share in record profits. Dockworkers deserve a fair share for their hard work getting essential goods out to communities across America.”

At the time of this writing, former President Donald Trump has yet to comment on the announcement.

Despite pleas from industry leaders and lawmakers, the administration repeatedly insisted that it would not invoke the Taft-Hartley Act, which would allow the president to submit a court order, facilitate an 80-day cooling-off period, send employees back to work, and force all parties to return to deliberations.

Meanwhile, the wild card may have been Florida Gov. Ron DeSantis (R). Hours before the news broke, the former presidential candidate announced that members of the Florida National Guard and the Florida State Guard would travel to ports where longshoremen were on strike. “At my direction, the Florida National Guard and the Florida State Guard will be deployed to critical ports affected by the strike to maintain order and, where possible, resume operations,” the governor wrote in a post on the social media platform X.

So, until Jan. 15, the United States averts an economic disaster.

Economists had warned that a one-week port strike would cost the US economy an estimated $3.78 billion, or $540 million per day. Oxford Economics forecasted a 0.13% cut in the GDP growth rate. Other economic observers sounded inflation alarm bells, warning that a prolonged labor dispute would stoke price pressures and product shortages heading into the holiday shopping season.

The prognostications were driven by the ILA-managed Atlantic and Gulf Coast ports handling between 35% and 49% of the roughly $3 trillion in US annual international trade. From Maine to Texas, these ports touch a whole host of goods, including agriculture, electronics, European automobiles and parts, household furnishings and goods, and more.

“A port strike would paralyze US trade and raise prices at a time when consumers and businesses are starting to feel relief from inflation,” said Erin McLaughlin, a senior economist at The Conference Board, in a report when the port strike started. “There’s no easy Plan B. While shippers have already begun diverting some cargo to the West Coast, capacity for such alternative options are limited.”

Of course, the short-lived work stoppages do not mean the US supply chain is left fully unscathed. After a few days, there were reports of ship congestion on the East Coast and cargo diversions to the West Coast terminals. Put simply, there will be a sizable backlog that could take weeks to clear. That said, shoppers can rest assured that tiny Tim and little Suzy will receive their favorite toys this holiday season, and they can thank Daggett on Christmas morning for not crippling them.