Ship workers on strike on the US East Coast, halting part of the country’s marine fleet

Dock workers on the US East Coast and Gulf Coast went on strike Tuesday morning, their first stoppage in nearly 50 years, halting the movement of nearly half of the nation’s ocean liners after negotiations over a new labor contract broke down over wages.

The strike is blocking everything from food to transportation at dozens of ports from Maine to Texas, as analysts warn the disruption will cost the economy billions of dollars a day, threatening jobs and inflation.

The International Longshoremen’s Association (ILA), which represents 45,000 longshoremen, had been negotiating with the United States Maritime Alliance (USMX) employer group for a new six-year contract ahead of a midnight deadline on Sept. 30.

The ILA said in a statement Tuesday that it closed all ports from Maine to Texas at 12:01 a.m. ET and rejected the USMX’s final offer made Monday, adding that the offer fell “too far short of its members’ needs to ensure new construction.” agreement.”

The ILA’s fiery leader, Harold Daggett, said employers such as shipping giants Maersk and APM Terminals North America had not raised wages properly or agreed to demands to stop port projects. USMX said in a statement on Monday that it has pledged to raise wages by nearly 50 percent, up from the previous proposal.

“We are determined to fight for as long as possible, to remain on strike for however long it takes, to get the wages and job protection that our ILA members deserve,” Daggett said Tuesday. “USMX owns this strike now. They must now meet our demands for this strike to end.”

USMX did not immediately respond to requests for comment.

The strike, the ILA’s first since 1977, is troubling businesses across the economy that rely on shipping to export their goods or secure important imports. This strike affects 36 ports that handle a wide range of goods from bananas to clothing to cars.

There are about 100,000 containers at ports in the New York City area alone waiting to be unloaded, now frozen by the strike, and 35 ships bound for New York next week, said Rick Cotton, executive director of the Port Authority of New York. and New Jersey.

The union is “holding the whole country in a bind,” said Steve Hughes, CEO of HCS International, which specializes in automotive sourcing and shipping. “I’m really afraid it’s going to be bad.”

Biden says the federal government will not intervene

US President Joe Biden and Vice President Kamala Harris are closely monitoring the strike and expect its impact on consumers to be limited, the White House said on Tuesday.

“The President has directed his team to convey his message to both parties that they need to be at the table and negotiate in good faith – properly and quickly,” the White House said in a statement.

The president also directed his Supply Chain Disruptions Task Force to meet daily and prepare to deal with potential disruptions, the statement said.

Biden administration officials met with both the USMX and the ILA before the strike to promote the agreement. But the Biden administration has repeatedly ruled out the use of union power to break a strike in the event of disputes.

US Chamber of Commerce president Suzanne Clark urged Biden on Monday to reconsider, saying “it would be unwise to allow a contract dispute to scare our economy.”

Savings plans

Retailers that account for nearly half of all container shipping volume have been busy implementing savings plans as they enter their most important winter holiday sales season.

Many major players rushed to sell Halloween and Christmas early to avoid any disruptions related to the strike, incurring additional costs to transport and store those goods.

Retail behemoth Walmart, the US’s largest box shipper, and warehouse club operator Costco said they were doing everything they could to minimize any impact.

New York Governor Kathy Hochul said Monday the state does not expect any immediate impact on food suppliers or essential goods.