Strike of 45,000 dockworkers in US ports expected to start at midnight | How might this impact holiday shopping?

The union representing American dockworkers announced that 45,000 members would walk out at midnight, triggering a massive strike that could close ports on the East and Gulf coasts.

The upcoming work stoppage threatens to significantly disrupt the country's supply chain, potentially leading to higher prices and delays for households and businesses if it continues for weeks. Indeed, the strike by members of the International Longshore Association could lead to the closure of 36 ports – which handle about half of the goods shipped to and from the United States –.

The ILA confirmed over the weekend that its members would take to the picket lines at 12:01 a.m. Tuesday. In an update Monday, the union continued to criticize the United States Maritime Alliance, which represents the ports, for continuing to “block the path” to a deal before the contract deadline.

RELATED: What to Know About a Possible ILA Strike Involving Ports Along the Eastern and Gulf Coasts

East and Gulf Coast ports prepare for possible worker strike

“USMX-represented shipping carriers want to enjoy the rich billion-dollar profits they make in 2024, while offering ILA longshore workers unacceptable wages that we reject,” ILA said in a statement. prepared press release. “ILA longshoremen deserve to be compensated for the important work they do to keep American commerce moving and growing.”

ILA also accused shippers of “defrauding their customers” by significantly increasing container prices in recent weeks. The union said this would lead to increased costs for American consumers.

The Associated Press has contacted a USMX spokesperson for comment.

If prolonged, the strike would force companies to pay shippers for delays and cause some goods to arrive late during the peak holiday shopping season — which could impact the delivery of everything from toys to artificial Christmas trees, cars, coffee and vegetables. Americans could also face higher prices as retailers feel a supply squeeze.

“If the strikes continue, they will cause huge delays in the supply chain, a ripple effect that will undoubtedly continue into 2025 and cause chaos in the industry,” noted Jay Dhokia, founder of supply chain management and logistics company Pro3PL.

Dhokia added that East Coast ports are not the only ones at risk of disruption, as concerns that led to the strike have already diverted many shipments to the West, adding to road congestion and pressure increased demand. The impacts will also be felt internationally, particularly in countries like the United Kingdom, he said, where the United States is its largest trading partner.

ILA members are demanding higher wages and a complete ban on automation of cranes, gates and container moving trucks used for loading or unloading goods.

The upcoming strike by ILA workers – expected to affect ports from Maine to Texas – will be the union's first since 1977. West Coast dockworkers belong to a different union and are not involved in the strike.

If a strike were deemed a danger to the economic health of the United States, President Joe Biden could, under the Taft-Hartley Act of 1947, seek a court order for an 80-day cooling-off period. This would suspend the strike.

All eyes are on what action, if any, the administration might take, especially with a close presidential election just weeks away. But Biden has signaled he will not exercise that power.

In an exchange with reporters Sunday, Biden responded “no” when asked if he planned to intervene in the possible work stoppage.

“Because it's collective bargaining, I don't believe in Taft-Hartley,” Biden said, referring to a 1947 law that allows the president to intervene in labor disputes that threaten health or the security of the country.

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Krisher was reported from Detroit. AP writers Mae Anderson in New York and Stephen Groves in Dover, Delaware, contributed to this report.

Copyright 2024 by Associated Press. All rights reserved.

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