Impending Union Strike Threatens Major U.S. Seaports and Supply Chains

Around 45,000 union workers at U.S. East and Gulf Coast seaports may go on strike on October 1, hitting 36 ports that handle about half of U.S. ocean imports. This could disrupt the supply chain, increase shipping costs, and create backlogs, affecting goods from food to pharmaceuticals.

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 availability of a range of goods from bananas to clothing to cars shipped via container, 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 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 strike at all East Coast and Gulf of Mexico ports would be the first for the ILA since 1977.

(With inputs from agencies.)