The U.S. port strike is over. This is what it means for transportation and shipping stocks.

By James Rogers

The three-day dockworkers' strike impacted U.S. ports from Maine to Texas

The end of the three-day U.S. ports strike has implications for a number of transportation and shipping stocks, say analysts.

Late Thursday the International Longshoremen's Association and the United States Maritime Alliance (USMX) said they have reached a tentative agreement on wages and agreed to extend their Master Contract until Jan. 15, 2025. The agreement ended a strike that affected U.S. ports from Maine to Texas and sparked fears of widespread economic impact.

Trucking company XPO Inc. (XPO), which reports third-quarter results on Oct. 30, stands to benefit from the resolution of the ports strike, according to analyst firm Oppenheimer.

Related: Dockworkers union agrees to suspend port strike until Jan. 15 after tentative deal

"With the port strike now resolved, alleviating some near-term uncertainty, potentially lower interest rates enhance the attractiveness of XPO's current valuation looking to 2025E/beyond," wrote Oppenheimer analyst Scott Schneeberger, in a note released Friday. Oppenheimer reiterated its outperform rating and $140 price target for XPO.

XPO shares are up 0.8% after ending Thursday's session down 1.4%.

However, the end of the strike is keeping pressure on transport stocks, according to J.P. Morgan. "We initially stated that a strike lasting longer than a week would be a surprise given the economic and political consequences and stated that we'd fade any strength in transport stocks associated with the hope of a disruption-driven rate spike," wrote J.P. Morgan analyst Brian Ossenbeck, in a note released Friday. "The market has given back some of these gains since the port strike started but we still expect pressure on truckload-rate sensitive stocks including KNX and JBHT along with forwarders CHRW and EXPD now that the airfreight opportunity has been eliminated."

Opinion: Why the dockworker strike was really an aging-workforce issue

Knight-Swift Transportation Holdings Inc. (KNX) shares are down 2%, while J.B. Hunt Transport Services Inc. (JBHT) shares are down 1.3%. C.H. Robinson Worldwide Inc.'s (CHRW) stock is up 0.7%, while Expeditors International of Washington Inc. (EXPD) is down 1.9%.

"Generally the market shrugged off the impact of a strike on transportation stocks, with the exception of container liner companies or companies with direct container exposure," wrote Stifel analyst J. Bruce Chan, in a note released Thursday. "This does remove an overhang on the broader economy, but we would expect some of the companies punished the most this week would be in line for the best near-term upside as business returns to normal."

Shares of container liner ZIM Integrated Shipping Services Ltd. (ZIM) have tumbled since the strike began, and ended Thursday's session down 7.4%. The stock is down 14.9% Friday.

Related: Dockworkers can make six-figure salaries without a college degree. So do these other blue-collar workers.

FedEx Corp.'s (FDX) stock was also weighed down by the strike action, and is down 0.2% Friday after ending Thursday's session down 1.8%. United Parcel Service Inc.'s (UPS) shares also tumbled this week, but are up 0.3% Friday.

Shares of logistics and transportation company Matson Inc. (MATX) are down 2.4% and on pace to extend their losing streak to four days.

Rail stock CSX Corp. (CSX) is up 0.3% after a three-day losing streak. Rival Norfolk Southern Corp.'s stock (NSC) is up 0.5% after ending Thursday's session down 0.9%.

Related:These consumer-staples stocks could take a hit from the port strike

Bruce Chan described the swift end to the ports strike as a best-case scenario. "Three days should have very little impact on supply chains, inventory stockpiles, etc., he wrote. "Frankly, the impact of Hurricane Helene is likely to be greater on transportation and logistics than the ILA strike."

-James Rogers

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10-04-24 1129ET

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