Dockers are on strike, closing ports in the east, in the Persian Gulf: what does this mean?

Longshoremen took part in a historic strike, picketing and closing ports on the East Coast and the Gulf Coast, from Maine to Texas.

Supply chain disruptions and economic impacts could be catastrophic with each day the 36 ports are closed – up to $5 billion a day as imports and exports are blocked.

The International Longshoremen’s Association (ILA), with about 45,000 workers, went on strike on October 1 as contract negotiations with the shipping industry group US Maritime Alliance (USMX) reached an impasse over wages and automation.

“USMX sparked this strike when it chose to maintain its position against foreign ocean carriers earning billions of dollars in U.S. ports, but not to compensate American ILA longshore workers who perform the jobs that make them wealthy,” ILA President Harold Daggett said in a statement released early Tuesday.

Negotiations have been stalled for months as workers demanded better pay and resisted artificial intelligence and automation taking over their jobs.

“Every day of inactivity that a ship does not come into port costs money, sometimes a lot of it… which ultimately goes to consumers,” Stamatis Tsantanis, president and chief executive of shippers Seanergy Maritime and United Maritime, said in a statement.

However, influence is not as clear-cut as money. The length of time the ports are closed will also cost the recovery period to get everything back to normal.

Jonathan Gold, vice president of supply chain and customs policy at the Nation Retail Federation, estimates that for each day of the strike, it takes about three to five days to clear the backlog, and “the longer it takes, the more complicated it gets.” he said.

Retailers like Costco, shipping months in advance, are expediting orders for holiday goods ahead of a possible port strike, as indicated by a surge in container imports and freight rates in July and August, according to news reports.

Ports on the eastern Gulf Coast handle approximately half of all containerized goods shipped to and from the U.S., including major ports: Baltimore; Boston; Charleston, South Carolina; Jacksonville, Florida; Miami; Houston; Cell, Alabama; New Orleans; New York/New Jersey; Norfolk, Virginia; Philadelphia; Savannah, Georgia; Tampa, Florida; and Wilmington, Delaware.

According to press reports, economic activity at ports affects many different types of businesses, such as warehousing and transportation, which may be affected by work stoppages and result in more than 100,000 workers losing their jobs.

The far-reaching effects of the port strike on businesses and consumers will even touch your kitchen table.

Consumers would be the first to notice shortages of perishable products because popular fruits like bananas could be gone from store shelves in a matter of weeks, given that about two-thirds of U.S. bananas arrive at East Coast ports.

Here’s what you need to know.

What is at the heart of the labor dispute?

Union workers at ports on the East Coast and Gulf Coast earn a base wage of $39 an hour after six years on the job, compared with reports that union workers on the West Coast earn $54.85 an hour.

The International Longshoremen’s Association is calling for a 77% wage increase over six years and further restrictions and bans on the automation of cranes, gates and the movement of containers used to load or unload cargo.

According to news sources, USMX responded by offering a 40% wage increase, but the union rejected it, calling the offer a “joke.”

There has been no ILA strike against these ports since 1977.

Which products would be affected by a port strike?

The port strike will impact imports of vehicles, car parts, machinery, steel, precision instruments, computers, electronic parts and alcohol – 80% of imported beer, wine, whiskey and scotch and 60% of rum arrives at East Coast and Coastal ports Persian Gulf.

The Port of Baltimore, Maryland, leads the nation in automotive shipments. The Port of Philadelphia supplies fruits and vegetables, the Port of New Orleans supplies coffee and wood products such as plywood.

Agricultural impacts would be felt, such as the import of bananas and fruit, coffee and cocoa, or the export of soybeans and soybean meal. However, an even more significant impact would be felt for refrigerated or frozen meat, seafood and egg products, which require refrigerated containers that cannot stand for very long.

The Port of Wilmington, Delaware is the main port for Dole Fresh Fruit Co. and Chiquita Fresh North America, handling approximately two-thirds of all U.S. banana imports

“Any fruit that arrives after October 1 will be put in the trash,” Peter Kopke Sr. of Port Washington importer Kopke Fruit told The Orange County Register. “And all the people who invested in this business will lose a fortune.”

Knitted and non-knitted clothing, furniture, plywood and pharmaceutical products, and year-end holiday items would be among the endless list of products affected by the strike.

Dockers are on strike, closing ports in the east, in the Persian Gulf: what does this mean?

What is at the heart of the labor dispute?

Which products would be affected by a port strike?

By meerna

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Dockers are on strike, closing ports in the east, in the Persian Gulf: what does this mean?

What is at the heart of the labor dispute?

Which products would be affected by a port strike?

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