US Dockworkers Strike Halts Half of Nation’s Ocean Shipping
Dockworkers along the U.S. East and Gulf Coasts launched their first major strike in nearly 50 years on Tuesday, stopping around half of the country’s ocean shipping. The strike follows a breakdown in labor contract negotiations over wages between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX).
The strike affects 36 ports from Maine to Texas, disrupting the flow of goods, including food and automobiles. Economists estimate the strike could cost the U.S. economy approximately $5 billion per day and raise inflation risks. Despite the economic impact, the Biden administration has stated it will not use federal powers to intervene, instead urging employers to improve their contract offer.
The ILA, representing 45,000 workers, rejected the latest proposal from the USMX, which included a nearly 50% wage increase. ILA President Harold Daggett emphasized that workers are seeking better pay and protections against automation projects that threaten jobs. The union demands a $5 per hour raise each year for the next six years.
Shipping companies, including Maersk, have warned of potential disruptions. French shipping giant CMA CGM has declared force majeure and may impose additional fees due to delays.
While retailers like Walmart and Costco have implemented contingency plans to mitigate disruptions, analysts caution that prolonged strikes could lead to increased import costs, which may ultimately be passed on to consumers.