U.S. East and Gulf Coast port workers are set to go on strike in less than 10 hours, with no talks currently scheduled to avert the stoppage that could halt container traffic from Maine to Texas and cost the economy billions per day. The labor contract between the International Longshoremen’s Association (ILA), representing 45,000 port workers, and the United States Maritime Alliance (USMX) employer group expires late Monday, with negotiations at an impasse over pay.
“All signs are that there will be a strike,” said Rick Cotton, executive director of the Port Authority of New York and New Jersey, during a press conference on Monday. He added that the gates of the marine terminals will close at 5 p.m. ET (2100 GMT), leaving nearly 100,000 containers stored at the port. Another 35 ships expected to arrive will remain anchored during the strike.
U.S. Chamber of Commerce President Suzanne Clark urged President Joe Biden to use his authority to prevent the strike for 80 days, warning that allowing a contract dispute to continue would shock the economy. Despite the looming threat, Biden said on Sunday that he does not plan to intervene.
The strike, scheduled to begin Tuesday at 12:01 a.m. ET, would mark the first coast-wide ILA strike since 1977, affecting ports that handle roughly half of the nation’s ocean shipping. The ILA claims that the USMX has offered an “unacceptable wage package,” leading to the impasse.
If the strike occurs, it could disrupt the flow of goods ranging from food to automobiles, potentially stoking inflation and impacting jobs just weeks before the U.S. presidential election. Governor Kathy Hochul of New York warned that while the strike may not immediately affect essential goods, the state remains concerned about supply chain disruptions, especially for critical items like medical supplies.
Retailers have already implemented contingency plans, stocking goods ahead of the potential strike to avoid disruptions during the crucial holiday season. However, a prolonged strike could lead to severe economic consequences. Jay Timmons, CEO of the National Association of Manufacturers, emphasized the impact on U.S. supply chains, warning that billions of dollars of goods rely on access to East and Gulf Coast ports.
The dispute stems from ILA demands for significant wage increases and a halt to terminal automation projects. ILA leader Harold Daggett threatened to shut down all 36 ports covered by the union. While the Biden administration has urged both sides to negotiate, no talks are planned, leaving the situation unresolved as the strike deadline approaches.