Historic Strike Halts Half of U.S. Ocean Shipping

Dockworkers on the U.S. East Coast and Gulf Coast began their first major strike in nearly 50 years, disrupting half of the nation's ocean shipping. The strike follows failed labor negotiations over wages with the United States Maritime Alliance. Analysts warn it could cost billions daily and stoke inflation.

Early Tuesday, dockworkers on the U.S. East Coast and Gulf Coast initiated a large-scale strike, their first in nearly five decades, effectively halting the flow of approximately half of the nation's ocean shipping. The labor stoppage comes after negotiations for a new labor contract with the United States Maritime Alliance (USMX) broke down over wage disputes.

The International Longshoremen's Association (ILA), representing 45,000 port workers, announced the shutdown of all ports from Maine to Texas at 12:01 a.m. ET, following the rejection of USMX's final wage proposal. The ILA is demanding a 61.5% wage increase, while USMX has offered nearly 50%.

The strike severely impacts businesses dependent on ocean shipping, causing concerns of potential inflation and job losses. It has also placed President Joe Biden in a difficult position amid a tight election race. The White House is monitoring the situation but has ruled out federal intervention. Economists suggest the strike is unlikely to cause major economic disruption unless it persists for an extended period.

(With inputs from agencies.)