ILA union workers strike in in Elizabeth, New Jersey, U.S., October 1, 2024. (REUTERS/Shannon Stapleton)
Thousands of port workers from Maine to Texas went on strike early Tuesday morning, which economists warn could spark nationwide shortages and higher prices for American consumers.
Members of the International Longshoremen’s Association, which represents 45,000 dockworkers at East Coast and Gulf Coast ports, walked off their jobs early Tuesday after failing to reach a new contract with port employers by the Monday deadline. The strike closed 36 ports, which handle more than half of the country’s imports and exports, CBS News reported.
Experts expect the strike to cost the economy $5 billion a day and raise prices for American consumers, Fox News reported. Some wholesale importers are already increasing their prices to supplement the higher costs due to the port closures, forcing the grocery stores to either absorb the increased costs or pass them on to consumers, the Wall Street Journal reported. Additionally, increased competition for space at West Coast ports is expected to drive up prices even more.
It is unclear how long the strike will last, but analysts warn that the longer the workers strike, the more time it will take for the market to recover.
"Every idle day that a ship does not get into the port costs money and sometimes a lot of money … that ultimately gets passed onto consumers," Stamatis Tsantanis, chairman of shipper Seanergy Maritime and United Maritime, said in a statement.
The strike comes just 35 days before the presidential election and could spell trouble for Democrats on the ballot, including Vice President Kamala Harris, as voters are already frustrated by a weak economy under the Biden-Harris administration, Politico reported. Harris is also struggling to maintain support from union households, a historically Democratic demographic.
Port and business leaders blamed the Biden-Harris administration’s lack of leadership for the strike, and retailers stressed the importance of the reopening of the ports, calling on the administration to stay involved.
"At a time when inflation is on the downward trend, a strike or other disruption would significantly impact retailers, consumers and the economy," National Retail Federation CEO Matt Shay said. "The administration needs to offer any and all support to get the parties back to the table to negotiate a new contract."
The Biden administration has vowed not to intervene in the strike. Biden and Harris are "closely monitoring potential supply chain impacts and assessing ways to address potential impacts, if necessary," the White House said in a Tuesday statement.
"The importance of keeping these ports operational cannot be overstated, especially as the peak holiday season approaches," the Retail Industry Leaders Association said in a statement. "A disruption in cargo movements would have profound consequences for retailers, manufacturers and consumers across the country."
ILA is seeking a 77 percent wage increase over six years and a stop to port automation, citing heightened inflation and job security. The union declined the United States Maritime Alliance’s offer of a 50 percent wage increase over six years.
"Nothing’s going to move without us—nothing," ILA president Harold Daggett said in a Facebook video posted Tuesday.
In 2002, port workers went on a similar strike for 11 days, and it took 6 months to recover, USA Today reported.
The strike is expected to disrupt access to many goods, including produce, cars, auto and machinery parts, clothing, pharmaceuticals, wine and spirits, holiday goods like toys, and seafood, experts said.
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