Possible Labor Strike Threatens U.S. Trade at Key Seaports Ahead of Election

Around 45,000 union workers might strike at U.S. East and Gulf Coast seaports on October 1, impacting import and export trade significantly. This includes essential goods like cars and agricultural products, and the strike could result in increased shipping costs and extensive delays, especially crucial ahead of the presidential election.

Some 45,000 union workers could walk off the job at seaports on the U.S. East and Gulf Coasts on Oct 1, cutting off vital trade arteries just weeks ahead of the nation's presidential election. A strike would hit 36 ports that handle about one-half of U.S. ocean imports. That could affect the availability of a range of goods from bananas to clothing to cars shipped via containers, while creating weeks-long backlogs at ports. It could also stoke shipping cost increases that may be passed on to voters already frustrated with housing and food inflation, according to logistics experts.

The International Longshoremen's Association (ILA) union representing workers at 36 ports from Maine to Texas and the United States Maritime Alliance employer group appear to have hit an impasse over pay. The current six-year contract expires at midnight on Sept. 30.

A potential strike at all East Coast and Gulf of Mexico ports would be the first for the ILA since 1977. The White House said it is not trying to help broker a deal, as it did last year during West Coast talks, and a Biden administration official has said the President would not use his federal powers to block a strike.

(With inputs from agencies.)