Photo by Chris Linnett
Long queues of container ships are forming outside major U.S. ports as the largest dockworker strike in nearly half a century continues into its third day. The strike, initiated by approximately 45,000 members of the International Longshoremen’s Association (ILA), began on Tuesday after negotiations for a new six-year contract with the United States Maritime Alliance (USMX) broke down. This work stoppage is preventing the unloading of goods and threatens shortages of essential products ranging from bananas to auto parts.
As of Wednesday, at least 45 container vessels were reported anchored outside East Coast and Gulf Coast ports, a dramatic increase from just three vessels before the strike commenced on Sunday, according to Everstream Analytics. Jena Santoro, an analyst at Everstream, indicated that the backlog could double by the end of the week, with resulting congestion potentially taking weeks or months to resolve.
The ILA is demanding significant pay increases and commitments from employers to halt automation projects that they believe threaten jobs. Although USMX offered a 50% pay increase, the ILA deemed this insufficient.
The Biden administration has sided with the union, urging port employers to enhance their pay offers amid record profits in the shipping industry since the COVID-19 pandemic.
While economists predict that initial consumer prices may not rise due to accelerated shipments prior to the strike, they warn that prolonged disruptions could lead to increased food prices first. The National Retail Federation has called on Biden’s administration to intervene using federal authority to halt the strike, citing potential “devastating consequences” for the economy. However, the administration has indicated it will not use its powers to force an end to the strike.
As this situation unfolds, experts like Andrew Coggins from Pace University highlight that each day of delay could result in price increases of 1% to 2% across various categories. The strike impacts 36 ports including New York, Baltimore, and Houston, which handle a wide array of containerized goods critical for both domestic and international supply chains.
For ongoing updates and further details regarding this developing story, refer to sources such as Reuters and Business Insider.
Sources:
[1] https://ca.finance.yahoo.com/news/ship-queue-grows-us-ports-050556363.html
[2] https://www.dailysabah.com/business/transportation/ship-queue-grows-at-us-ports-amid-ongoing-dockworker-strike
[3] https://www.businessinsider.com/queue-of-cargo-ships-backing-up-at-us-ports-2024-10
[4] https://www.cnbc.com/2024/10/01/what-a-lengthy-us-port-strike-could-mean-for-global-supply-chains.html
[5] https://www.bloomberg.com/news/newsletters/2024-10-03/supply-chain-latest-ship-queues-and-the-us-dockworker-strike
[6] https://www.lloydslist.com/LL1150830/Biden-backs-dockworkers-union-as-the-containership-queues-build
[7] https://www.reuters.com/world/americas/montreal-port-says-strike-by-workers-is-over-clients-can-expect-delays-2024-10-03/
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