Ports on the Brink: U.S. Shippers Divert Amid Strike Worries

U.S. shippers are diverting away from East and Gulf Coast ports due to concerns over potential strikes by 45,000 dockworkers. Tensions remain after an unresolved contract issue on automation left negotiations uncertain. Many businesses, fearing disruption, are re-routing to the West Coast to avoid delays.

Amid concerns over possible worker strikes, U.S. shippers are avoiding East and Gulf Coast ports. The International Longshoremen's Association is at odds with employers over automation in contract talks, leading to fears of further strikes affecting 45,000 dockworkers.

In October, shippers avoided a strike with a tentative agreement, but with a key automation issue unresolved, some businesses are switching to West Coast ports. Chris Peterson, CEO at Newell Brands, has redirected hundreds of containers in anticipation of a two-week strike.

The automation debate raises concerns among union leaders, who see it as a job threat, and companies view it as a profit opportunity. A second strike could heavily impact vital ports like New York and Houston.

(With inputs from agencies.)