Historic Strike Halts U.S. East and Gulf Coast Shipping

Dockworkers initiated the first major strike in nearly 50 years along the U.S. East and Gulf Coasts, disrupting half of the nation's ocean shipping. The strike, primarily over wage disputes and port automation, could cost the economy billions daily and stoke inflation. Federal officials urge negotiation.

In an unprecedented move, dockworkers on America's East and Gulf Coasts initiated their first large-scale strike in nearly half a century on Tuesday, freezing nearly 50% of the nation's ocean cargo flow. This halt follows the breakdown of labor contract negotiations over wages.

The International Longshoremen's Association (ILA), which represents 45,000 workers, ceased operations at all ports from Maine to Texas at 12:01 a.m. ET after rejecting the United States Maritime Alliance's (USMX) final offer. The disrupted flow includes essential goods ranging from food to automobiles.

Economic analysts predict the strike could cost the U.S. economy billions of dollars daily and even trigger inflation. With 36 affected ports including key hubs like New York, Baltimore, and Houston, businesses reliant on ocean shipping are scrambling for backup plans. The Biden administration calls for a resolution, with potential significant economic repercussions looming over the nation.

(With inputs from agencies.)