The U.S. East Coast and Gulf Coast ports remain paralyzed as the dockworkers’ strike enters its second day, with no talks scheduled between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX). The work stoppage, which began on Tuesday, has already disrupted shipments of goods ranging from food to automobiles and could cost the U.S. economy $5 billion per day, according to analysts from JP Morgan.
The strike by 45,000 dockworkers has affected 36 major ports across the U.S., including critical locations like New York, Baltimore, and Houston. “We are prepared to fight as long as necessary,” said ILA leader Harold Daggett, who called for a $5-per-hour wage hike for each of the next six years and an end to automation projects that threaten union jobs.
White House Steps In – Urges Employers to Negotiate
President Joe Biden has called on port employers to return to the bargaining table, stating, “They made incredible profits, over 800% since the pandemic. It’s time for them to sit at the table and get this strike done.” Despite mounting pressure from the White House, negotiations have stalled, raising concerns that the strike could extend, with significant consequences for both the economy and consumers.
Retailers and manufacturers have been bracing for the impact of the strike, with some companies implementing backup plans to safeguard their supply chains. “If it becomes a protracted issue, it will be a bigger issue for everybody,” said Sean Connolly, CEO of packaged food maker Conagra, which has been preparing for the strike for months.
Although the strike has not yet affected consumer prices, Morgan Stanley economists warn that food prices could increase first if the stoppage is prolonged. Additionally, the shipping industry is already seeing disruption, with 38 container vessels backed up by Tuesday, compared to just three before the strike.
The Biden administration has made it clear that it expects foreign ocean carriers, which profited significantly during the pandemic, to offer a fair contract to dockworkers. “It’s time those ocean carriers offered a strong and fair contract that reflects ILA workers’ contribution to our economy,” said Biden in a post on X. However, the president has refrained from directly intervening to end the strike.
Retailers and Trade Groups Push for Federal Action
Retailers are increasingly concerned about the potential long-term impact. The National Retail Federation, along with 272 other trade associations, has called on the Biden administration to use federal authority to end the strike, warning of “devastating consequences” for the U.S. economy. While inventories for the holiday season remain largely intact, executives such as Isaac Larian, CEO of MGA Entertainment, expressed concerns about spring 2025 deliveries if the strike continues.
As the strike stretches on, concerns are mounting over the potential economic fallout, and retailers, manufacturers, and government officials are anxiously awaiting a resolution.