A major dockworker strike is underway at ports across the country closing dozens of ports along the East and Gulf coasts in a protest over wages and automation that could reignite inflation and cause supply shortages of goods. , if it lasts more than a few weeks.
As of this morning, 36 ports from Maine to Texas were closed after the contract between the ports and about 45,000 members of the International Longshoremen’s Association expired. These ports handle approximately half of the goods shipped to and from the United States.
Workers began picketing the port of Philadelphia shortly after midnight, walking in a circle at a railroad crossing outside the port and chanting “No job without a fair contract.”
The union had message signs on the side of a truck that read: “Automation hurts families: ILA stands up for job protections.”
Local ILA President Boise Butler said workers want a fair contract that does not allow the automation of their jobs.
Shipping companies made billions during the pandemic by charging high prices, he said. “Now we want them to pay. They’re going to do it,” Butler said.
The strike will likely have an almost immediate impact on supplies of perishable imports like bananas, for example. Ports affected by the strike handle 3.8 million metric tons of bananas each year, or 75% of the country’s supply, according to the American Farm Bureau Federation.
If the strike lasts more than a few weeks, it could significantly disrupt the country’s supply chain, potentially leading to higher prices and delays in goods arriving at homes and businesses. It would force companies to pay shippers for delays and could affect the delivery of everything from toys to artificial Christmas trees, cars, coffee and fruit.
As the strike continues, here’s what’s at stake, why longshoremen are striking, what products could be affected and more.
The association representing at least 45,000 workers did not reach an agreement on their demands.
MORE EXPENSIVE FRUITS OR VEGETABLES
According to experts, the first thing to be affected will be fresh products, such as bananas and fresh seafood, since fresh seafood worth approximately $17 billion passes through these ports.
Ports affected by the strike also handle 3.8 million metric tons of bananas each year, or 75% of the country’s supply, according to the American Farm Bureau Federation.
Soybeans, poultry, raw sugar, rum and more could also be affected, experts said.
“For retailers, East Coast and Gulf Coast ports are a critical part of our consumer electronics, footwear, grocery, canned goods and other products,” said Johnathan Gold, economist at the National Retail Federation.
The inflation report for July and recent months could open the door for a possible cut in interest rates by the Fed. To see more from Telemundo, visit
If it lasts more than a few weeks, a work stoppage would significantly entangle the country’s supply chain, potentially leading to higher prices and delays in goods arriving at homes and businesses.
The strike will force companies to pay shippers for delays and cause some products to arrive late for the peak holiday shopping season, which could affect the delivery of anything from toys or artificial Christmas trees to cars, coffee and fruit.
It could also hamper exports from East Coast ports and create traffic jams at West Coast ports, where workers are represented by a different union. Railroads say they can increase capacity to move more freight from the West Coast, but analysts say they can’t move enough to offset the closure of Eastern ports.
“If the strikes continue, they will cause huge delays throughout the supply chain, a domino effect that will undoubtedly extend until 2025 and cause chaos throughout the industry,” said Jay Dhokia, founder of the supply chain management company and Pro3PL logistics.
JP Morgan estimated that a strike closing East and Gulf Coast ports could cost the economy between $3.8 billion and $4.5 billion a day, with some of that amount to be recovered over time after normal operations resume.
WHICH PORTS ARE AFFECTED
While any port can handle any type of merchandise, some ports are specialized in handling merchandise for a particular industry. Ports that would be affected by the closure include Baltimore and Brunswick, Georgia, the two busiest automotive ports; Philadelphia, which prioritizes fruits and vegetables; and New Orleans, which handles coffee, primarily from South America and Southeast Asia, various chemicals from Mexico and northern Europe, and wood products such as plywood from Asia and South America.
Other major ports affected include Boston; New York/New Jersey; Norfolk, Virginia; Wilmington, North Carolina; Charleston, South Carolina; Savannah, Georgia; Tampa, FL; Mobile, Alabama; and Houston.
