Historic Dockworkers' Strike Disrupts U.S. Shipping

U.S. dockworkers on the East and Gulf Coasts launched a significant strike on Tuesday after labor contract negotiations failed, halting nearly half of the country's ocean shipping. The strike, the first of its scale in almost 50 years, is projected to cost the economy billions daily, threaten jobs, and potentially spur inflation.

U.S. East Coast and Gulf Coast dockworkers initiated their first large-scale strike in nearly 50 years on Tuesday, disrupting about half the nation's ocean shipping. The strike, following a breakdown in labor contract negotiations over wages, brings food, automobile shipments, and more to a standstill across dozens of ports from Maine to Texas. Analysts warn this disruption will cost the economy billions of dollars daily, threaten jobs, and potentially increase inflation.

President Joe Biden's administration, despite repeated affirmations, has declined to use federal power to end the strike. On Tuesday, the administration urged dockworker employers to augment their contract offer to resolve the impasse. Negotiations continued without active bargaining late Tuesday, as the strike seemed poised to extend into a second day, according to sources familiar with the talks.

The International Longshoremen's Association (ILA), representing 45,000 port workers, and the United States Maritime Alliance (USMX) employer group had been negotiating a new six-year contract. The ILA rejected USMX's final proposal at the Monday midnight deadline, resulting in the halting of operations at all ports from Maine to Texas. ILA leader Harold Daggett emphasized the union's demand for substantial pay increases and protections against port automation that endangers job security.

(With inputs from agencies.)