Massive Dockworkers Strike Threatens US Ports and Supply Chain

Approximately 45,000 US dockworkers plan to strike, potentially shutting down ports along the East and Gulf coasts. This action could disrupt the national supply chain, causing delays and higher prices. The union demands higher wages and a ban on automation of port operations. President Biden will not intervene.

The union representing 45,000 US dockworkers indicated that a massive strike will start at midnight, potentially halting operations at ports across the East and Gulf coasts.

This anticipated strike threatens to disrupt the nation's supply chain, likely leading to increased prices and delays for households and businesses if it extends over several weeks. The International Longshoremen's Association (ILA) could shut down 36 ports, which manage about half of the goods transported into and out of the US.

Over the weekend, the ILA confirmed its members would begin picketing at 12:01 am on Tuesday. On Monday, the union blamed the United States Maritime Alliance (USMX) for hindering agreement on a new contract before the deadline.

The ILA criticized the USMX for offering unacceptable wage packages amidst billion-dollar profits, stating that longshore workers deserve fair compensation. The USMX spokesperson was contacted for comment.

If prolonged, the strike could lead to higher shipping costs for businesses and delayed goods just in time for the holiday shopping season, affecting everything from toys to cars. This scenario might also drive up prices as retailers struggle with supply shortages, all ahead of a tight presidential election.

ILA members demand better wages and a complete ban on automating cranes, gates, and container-moving trucks used in freight operations.

This will be the ILA's first strike since 1977, with the Biden administration deciding not to intervene. During an exchange with reporters, President Joe Biden confirmed he would not step in, citing his belief against invoking the Taft-Hartley Act in this scenario.

(With inputs from agencies.)