Dockworkers Strike Cripples U.S. Ports, Threatens Economic Stability

The dockworkers strike affecting U.S. East Coast and Gulf Coast ports has entered its second day with no negotiations scheduled. The strike, involving 45,000 workers, is disrupting shipments and threatening to cost the economy billions daily. The Biden administration is pushing for a resolution, but prolonged stoppages could lead to price hikes.

A strike by 45,000 dockworkers has halted shipments at U.S. East Coast and Gulf Coast ports, entering its second day on Wednesday without scheduled negotiations, Reuters reports. Concerns are rising that the disruption could be prolonged, affecting shipments from food to automobiles across dozens of ports from Maine to Texas. Analysts warn the strike could cost the economy billions daily.

The Biden administration pressured U.S. port employers to raise their offer to secure a deal with dockworkers. Acting Labor Secretary Julie Su urged both sides to return to negotiations. Economists argue the strike won't initially raise consumer prices due to accelerated shipments for key goods but prolonged stoppages could cause food prices to rise, according to Morgan Stanley economists.

Lars Jensen of Vespucci Maritime noted the breakdown in negotiations signals the strike could last longer. "Unless USMX backs down and fulfills ILA's requirements, a short-term resolution seems unlikely," he said. By Tuesday, over 38 container vessels were backed up at U.S. ports, compared to just three before the strike. The ILA is advocating for a $5-per-hour wage hike yearly over six years and an end to automation projects that threaten union jobs.

(With inputs from agencies.)