Port Workers' Strike Threatens U.S. Economy

Port workers on the U.S. East and Gulf Coasts plan to strike, risking the halting of container traffic from Maine to Texas. This could result in billions lost daily for the economy. The strike stems from a disagreement over pay between the ILA union and the USMX employer group.

U.S. East and Gulf Coast port workers are poised to strike within hours, posing a major threat to container traffic from Maine to Texas and potentially costing the economy billions daily. The contract between the ILA union and the USMX employer group expires Monday, and negotiations remain deadlocked over pay.

Rick Cotton, executive director of the Port Authority of New York and New Jersey, stated that marine terminal gates would close at 5 p.m. ET, leaving nearly 100,000 containers stranded. The ILA announced the strike would start at 12:01 a.m. ET Tuesday, accusing the USMX of offering an unacceptable wage package.

Suzanne Clark of the U.S. Chamber of Commerce urged President Joe Biden to prevent the strike, although Biden has stated he does not plan to intervene. Governor Kathy Hochul expressed concerns over the potential impact on supply chains, from medical supplies to automobile imports.

(With inputs from agencies.)