New YorkCNN —
Time is running out to avoid a work stoppage at ports along the entire East and Gulf Coasts in what could become the most disruptive strike to the US economy in decades.
Members of the International Longshoremen’s Association are set to go on strike at 12:01 am ET Tuesday at three dozen facilities spread across 14 port authorities. There are few signs that a deal could be reached by the deadline set by the ILA and the United States Maritime Alliance, which uses the acronym USMX. The maritime alliance represents the major shipping lines, all of which are foreign owned; as well as terminal operators and port authorities.
The strike, which would be the first at these ports since 1977, could stop the flow of a wide variety of goods over the docks of almost all the cargo ports from Maine to Texas. This includes everything from bananas to European beer, wine and liquor, along with furniture, clothing, household goods and European autos, as well as parts needed to keep US factories operating and American workers in those plants on the job. It also could stop US exports now flowing through those ports, hurting sales for American companies.
Depending on the length of the strike, there could be shortages of consumer and industrial goods, which could then lead to price hikes. It would mark a setback to the economy, which has shown signs of recovery from pandemic-induced supply chain disruptions that resulted in a spike in inflation.
While the union says there are about 50,000 members covered by the contract, the USMX puts the number of port jobs closer to 25,000, with not enough jobs for all the workers in the union to work every day.
Port Wilmington in Delaware describes itself as the nation’s leading banana port, bringing in a large share of America’s favorite fruit. According to the American Farm Bureau, 1.2 million metric tons of bananas go through the ports that could be on strike next week, representing about one quarter of the nation’s bananas.
Other perishable items, such as cherries, also move through the ports, as do a large percentage of imported wine, beer and hard liquor. Raw materials used by US food producers, such as cocoa and sugar, also move through the ports.
And many non-perishable goods, such as furniture and appliances, also move through the ports. Retailers have been rushing in recent months to get the imported products they expect to sell during the holiday season delivered to them before the October 1 strike deadline.
The Port of Baltimore, which was briefly shut down in March after the collapse of the Key Bridge, handles the nation’s largest volume of auto imports.
The union has pledged to continue to handling military cargo even during a strike and said passenger ships won’t be affected. Oil tankers and ships carrying liquified natural gas usually go to other facilities that are not affected by the strike, as do bulk ships carrying things like grain. But almost all the other ports along the two coasts could be affected.
“We remain prepared to bargain at any time, but both sides must come to the table if we are going to reach a deal, and there is no indication that the ILA is interested in negotiating at this time,” the management group said last week in a statement,
Other perishable items, such as cherries, also move through the ports, as do a large percentage of imported wine, beer and hard liquor. Raw materials used by US food producers, such as cocoa and sugar, also move through the ports.
And many non-perishable goods, such as furniture and appliances, also move through the ports. Retailers have been rushing in recent months to get the imported products they expect to sell during the holiday season delivered to them before the October 1 strike deadline.
The Port of Baltimore, which was briefly shut down in March after the collapse of the Key Bridge, handles the nation’s largest volume of auto imports.
The union has pledged to continue to handling military cargo even during a strike and said passenger ships won’t be affected. Oil tankers and ships carrying liquified natural gas usually go to other facilities that are not affected by the strike, as do bulk ships carrying things like grain. But almost all the other ports along the two coasts could be affected.
Time is running out to avoid a work stoppage at ports along the entire East and Gulf Coasts in what could become the most disruptive strike to the US economy in decades.
Members of the International Longshoremen’s Association are set to go on strike at 12:01 am ET Tuesday at three dozen facilities spread across 14 port authorities. There are few signs that a deal could be reached by the deadline set by the ILA and the United States Maritime Alliance, which uses the acronym USMX. The maritime alliance represents the major shipping lines, all of which are foreign owned; as well as terminal operators and port authorities.
The strike, which would be the first at these ports since 1977, could stop the flow of a wide variety of goods over the docks of almost all the cargo ports from Maine to Texas. This includes everything from bananas to European beer, wine and liquor, along with furniture, clothing, household goods and European autos, as well as parts needed to keep US factories operating and American workers in those plants on the job. It also could stop US exports now flowing through those ports, hurting sales for American companies.
Depending on the length of the strike, there could be shortages of consumer and industrial goods, which could then lead to price hikes. It would mark a setback to the economy, which has shown signs of recovery from pandemic-induced supply chain disruptions that resulted in a spike in inflation.
While the union says there are about 50,000 members covered by the contract, the USMX puts the number of port jobs closer to 25,000, with not enough jobs for all the workers in the union to work every day.
What could be in short supply
The ports involved include the Port of New York and New Jersey, the nation’s third-largest port by volume of cargo handled. But it also includes ports with other specialties.Port Wilmington in Delaware describes itself as the nation’s leading banana port, bringing in a large share of America’s favorite fruit. According to the American Farm Bureau, 1.2 million metric tons of bananas go through the ports that could be on strike next week, representing about one quarter of the nation’s bananas.
Other perishable items, such as cherries, also move through the ports, as do a large percentage of imported wine, beer and hard liquor. Raw materials used by US food producers, such as cocoa and sugar, also move through the ports.
And many non-perishable goods, such as furniture and appliances, also move through the ports. Retailers have been rushing in recent months to get the imported products they expect to sell during the holiday season delivered to them before the October 1 strike deadline.
The Port of Baltimore, which was briefly shut down in March after the collapse of the Key Bridge, handles the nation’s largest volume of auto imports.
The union has pledged to continue to handling military cargo even during a strike and said passenger ships won’t be affected. Oil tankers and ships carrying liquified natural gas usually go to other facilities that are not affected by the strike, as do bulk ships carrying things like grain. But almost all the other ports along the two coasts could be affected.
What the two sides want
The USMX claims the union is refusing to negotiate in good faith and says the two sides have not met in person since June.“We remain prepared to bargain at any time, but both sides must come to the table if we are going to reach a deal, and there is no indication that the ILA is interested in negotiating at this time,” the management group said last week in a statement,
Other perishable items, such as cherries, also move through the ports, as do a large percentage of imported wine, beer and hard liquor. Raw materials used by US food producers, such as cocoa and sugar, also move through the ports.
And many non-perishable goods, such as furniture and appliances, also move through the ports. Retailers have been rushing in recent months to get the imported products they expect to sell during the holiday season delivered to them before the October 1 strike deadline.
The Port of Baltimore, which was briefly shut down in March after the collapse of the Key Bridge, handles the nation’s largest volume of auto imports.
The union has pledged to continue to handling military cargo even during a strike and said passenger ships won’t be affected. Oil tankers and ships carrying liquified natural gas usually go to other facilities that are not affected by the strike, as do bulk ships carrying things like grain. But almost all the other ports along the two coasts could be affected.
