Historic Dockworkers Strike Disrupts Major U.S. Ports: Economy at Risk

Dockworkers on the U.S. East and Gulf Coasts began their first major strike in nearly 50 years, affecting half of the nation's ocean shipping. The strike follows failed contract negotiations between the International Longshoremen's Association and the United States Maritime Alliance, potentially costing the economy billions and exacerbating inflation.

For the first time in nearly half a century, dockworkers on the U.S. East and Gulf Coasts commenced a large-scale strike on Tuesday, following unsuccessful wage negotiations. The strike has halted approximately half of the nation's ocean shipping across dozens of ports from Maine to Texas.

The International Longshoremen's Association (ILA), which represents 45,000 port workers, rejected the final proposal from the United States Maritime Alliance (USMX) employer group. The ILA's leader, Harold Daggett, stressed that the offer did not meet the union's demands on wage increases and port automation projects.

This historic strike affects 36 ports handling vital goods and adds pressure on President Joe Biden's administration as calls for intervention grow. Businesses are implementing backup plans to mitigate the impact, but the economy could still suffer significant setbacks, costing billions and threatening jobs across various sectors.

(With inputs from agencies.)