Dock Workers Strike Could Halt Operations at U.S. Ports

HOUSTON, TX — Dock workers are poised to strike at midnight if the U.S. Maritime Alliance and the International Longshoremen’s Association fail to reach a deal.

The strike could impact 36 U.S. ports, including Port Houston, and cause major disruptions to the national supply chain, according to reports. 

Negotiations stalled over protections against automation and a demand for a 77% wage increase over six years. The longshoremen’s union is also calling for a complete ban on the automation of cranes, gates, and container loading and unloading equipment. The contract between the two sides has been unresolved since June.

Supply chain experts estimate that the strike could cost the U.S. economy $5 billion daily, with each day of halted work requiring up to six days to clear cargo backlogs. Key industries like apparel, meat, and produce could see delays, though experts advise against hoarding products. Delays could last several weeks or months.

Ports along the Gulf Coast and East Coast, from Brownsville, Texas, to Maine, would be affected. While plans to extend port gate hours have been discussed, no immediate government intervention is expected. President Joe Biden indicated he does not plan to invoke the 1947 Taft-Hartley Act to prevent the strike, citing his support for collective bargaining.

The timing of the strike coincides with the holiday shipping season, further complicating matters for retailers. Jonathan Gold, vice president of the National Retail Federation, said many companies had already shipped goods to U.S. distribution centers in anticipation of disruptions. However, prolonged delays could lead to shortages and increased prices for consumers.

Greg Ahearn, CEO of the Toy Association, expressed concerns about the impact on the toy industry, where up to 60% of annual sales occur in the fourth quarter. He warned that product shortages and higher prices could hit retailers in the coming weeks if the strike extends into the holiday season.

The strike, if it occurs, would be the first by the International Longshoremen’s Association since 1977.