Nearly half of the nation's busiest ports are under threat of a potentially devastating strike after longshore workers and management fail to agree on a new collective bargaining agreement, leaving the U.S. economy in jeopardy. is poised to lose billions of dollars a day starting Tuesday.
The International Longshoremen's Association, which represents about 85,000 longshoremen along the East Coast and Gulf Coast, plans to finish work after midnight early Tuesday morning.
The ILA and the United States Maritime Alliance (USMX), which represents shipping lines, terminal operators and port authorities, have until the end of the day on Monday to reach an agreement to avoid a shutdown.
However, the two sides have not met since June, and there are no negotiations scheduled before the contract expires.
The strike will affect all 36 ports stretching from Maine to Texas. This is the first time since 1977 that work at the port has stopped due to a labor dispute.
Economic analysts said businesses were already pricing in a shutdown that would last several days, but the bigger risk was a longer shutdown.
The union is demanding significant wage increases and a complete ban on automation of cranes, gates and moving containers for loading and unloading cargo.
“The biggest concern is whether any type of strike will be prolonged and how that will affect product supply and prices for the holiday season,” said business consultant and Atlanta-based oXYGen Financial. co-founder Ted Jenkin told The Theatre. post.
As the holiday season approaches, strikes lasting days, weeks, or even months could end up hurting shoppers at checkout counters.
“If the strike is prolonged, there is no doubt that businesses will see significantly higher prices for their goods and have to pay shippers for delays that will delay their arrival at the height of the holiday season,” Jenkin said. Ta.
“The major retail chains have been preparing for a strike for months, so while a few days might not be a big deal, a month over the holiday period would be devastating.”
The work stoppage at the port will affect goods such as bananas, European beer, furniture, clothing, European cars and parts needed to keep factories running.
The strike also halts exports, making it impossible for U.S. companies to sell their products overseas.
Jason Fisk, CEO of Los Angeles-based Sarson Logistics, told the Post the strike would cost the economy an estimated $3.7 billion a day.
Fisk said that while importers are taking steps to reduce risk, the lengthening of shipping routes “could lead to higher consumer prices, especially in sensitive sectors such as luxury goods and automobiles,” so the U.S. Consumers said they could expect an “additional premium.”
Biden administration officials met with port operators on Friday to discuss negotiations with unions ahead of Tuesday, according to a White House official who spoke on condition of anonymity to discuss ongoing meetings. He reportedly told them that.
ILA spokesman James McNamara said in a statement on Sunday: “ILA solidarity remains strong and growing.”
The Toy Association of America, a major U.S. toy industry group, was one of about 200 organizations that wrote to President Biden this month asking him to work with both sides on a deal.
The National Grain and Feed Association also called on Biden to take action to avert a strike that would occur as harvest season begins.
with post wire
