Ship queues lengthen at US ports as dock workers' strike enters third day

NEW YORK Long lines of container ships lined up outside major U.S. ports Thursday as the largest dockworkers' strike in nearly half a century entered its third day, preventing unloading and threatening shortages of everything, from bananas to auto parts.

No negotiations were planned between the International Longshoremen's Association and employers, but port owners, under pressure from the White House to increase their wage offer to reach a deal, signaled late Wednesday that they were open to new negotiations.

At least 45 container ships that were unable to unload had anchored outside strike-hit East Coast and Gulf Coast ports Wednesday, up from just three before the strike began Sunday. , according to Everstream Analytics.

Many appear to have decided to wait, perhaps hoping for a quick resolution to the strike, rather than making the proactive decision to turn away, Jena Santoro of Everstreams said in a video presentation seen by Reuters.

She said the ship backlog could double by the end of the week and the resulting congestion could take weeks or even months to clear.

An alternative would be to sail to west coast ports on the other side of the country, likely via the Panama Canal, a journey of thousands of miles that would increase costs and extend delivery times by weeks.

The ILA launched its strike of 45,000 port workers from Maine to Texas on Tuesday, its first major stoppage since 1977, after negotiations for a new six-year contract with the Maritime Alliance employers group failed. United States (USMX).

A container ship at a facility in Bayonne, New Jersey. Bryan R. Smith / AFP – Getty Images file

The ILA is seeking a big pay rise as well as a commitment to halt port automation projects that it fears could eliminate jobs. The USMX had proposed a 50% salary increase, but the ILA said the increase was insufficient to address its concerns.

Reaching an agreement will require negotiations, the USMX said Wednesday evening. We cannot agree to preconditions for resuming negotiations, but we remain committed to negotiating in good faith to address the ILA's demands and the USMX's concerns, he said.

President Joe Biden's administration has sided with the union, pressuring port employers to increase their offer to reach a deal and citing the shipping industry's bumper profits since the COVID-19 pandemic. COVID-19.

Economists say port closures will not initially raise consumer prices because companies have ramped up shipments in recent months for essential goods. However, a prolonged shutdown will eventually take hold, with food prices likely to respond first, according to economists at Morgan Stanley.

The strike affects 36 ports, including New York, Baltimore and Houston, which handle a range of containerized cargo.

On Wednesday, the National Retail Federation, along with 272 other trade associations, called on the Biden administration to use its federal authority to end the strike, saying the walkout could have devastating consequences for the economy.

The Biden administration has repeatedly said it will not use federal powers to end the strike.

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