Impending Dockworker Strike Poised to Disrupt U.S. Ports and Supply Chain

The union representing US dockworkers has announced a strike involving 45,000 members, set to begin at midnight, potentially shutting down 36 ports along the East and Gulf coasts. The strike threatens to disrupt the nation's supply chain, raising prices and causing delays, particularly if it extends into the holiday season.

The union representing US dockworkers has announced that 45,000 members will initiate a massive strike at midnight, likely shutting down ports on the East and Gulf coasts.

This work stoppage could severely disrupt the national supply chain, leading to higher prices and delays for both households and businesses if prolonged. According to the International Longshoremen's Association (ILA), the strike might cause 36 key ports — responsible for handling half of US imports and exports — to halt operations.

The ILA confirmed over the weekend that members would begin picketing at 12:01 am on Tuesday and blamed the United States Maritime Alliance (USMX) for blocking agreement on a new contract. In a prepared statement, the ILA criticized USMX for offering an inadequate wage package despite enjoying substantial 2024 profits, and accused shippers of increasing container prices, driving costs up for American consumers.

If the strike proceeds, businesses might face shipping delays, affecting the delivery of a wide range of goods during peak holiday shopping season. Supply chain expert Jay Dhokia warned that the East Coast is not the only region at risk; shipments have already been diverted westward, heightening pressure on supply routes. An extended strike could impact international trade, notably with the United Kingdom.

The last ILA strike occurred in 1977, and the current strike's effects could compel President Biden to consider invoking the 1947 Taft-Hartley Act for an 80-day cooling-off period, though Biden recently indicated he has no plans to intervene.

(With inputs from agencies.)