The US longshoremen’s strike begins on the East and Gulf Coasts

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CNN
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According to the Associated Press, nearly 50,000 members of the International Longshoremen’s Association (ILA) went on strike Tuesday against ports on the country’s East and Gulf coasts, choking the flow of many of the country’s imports and exports. This could become America’s most destructive work shutdown in decades.

The AP reported that longshoremen began picketing at midnight shortly after the contract expired, suggesting there was no apparent deal. There appears to be a large gap between the union’s demands and the offer from the United States Maritime Alliance, which uses the acronym USMX. The maritime alliance represents the major shipping companies, all of which are foreign-owned; as well as terminal operators and port authorities.

The strike will halt the flow of a variety of goods through the docks of nearly every freight port from Maine to Texas. This includes everything from bananas to European beer, wine, and spirits to furniture, clothing, household goods, and European automobiles, as well as parts needed to run U.S. factories and the work of American workers in those factories. It could also prevent U.S. exports from flowing through those ports now, hurting the sales of American companies.

Depending on the duration of the strike, there could be shortages of consumer and industrial goods, which could then lead to price increases. It could also represent a setback for the economy, which is showing signs of recovery from pandemic-related supply chain disruptions that have led to a rise in inflation.

The ports involved include the Port of New York and New Jersey, the third largest port in the country by cargo volume handled. This also includes ports with other specialties.

Port Wilmington, Delaware bills itself as the country’s premier banana port, carrying a large share of America’s most popular fruit. According to the American Farm Bureau, 1.2 million tons of bananas arrive through the affected ports, accounting for about a quarter of the country’s banana production.

Other perishable goods such as cherries and a large proportion of imported wine, beer and liquor are also transported through the ports. The raw materials used by US food producers, such as cocoa and sugar, also make up a large part of the affected imports.

And many durable goods such as furniture and appliances are also imported through the affected ports. Retailers have been rushing in recent months to deliver the imported products they want to sell during the holiday season before the Oct. 1 strike deadline.

This is the first strike at these ports since 1977. While the union says about 50,000 members are covered by the collective bargaining agreement, the USMX estimates the number of port jobs to be closer to 25,000, with not enough jobs for all of the union’s workers on a daily basis.

This is a developing story. It will be updated.