Nearly 50,000 members of the International Longshoremen’s Association (ILA) went on strike Tuesday, halting operations at key East and Gulf Coast ports and choking off the flow of many of the nation’s imports and exports. The strike began at midnight, and could become one of the most disruptive work stoppages in decades, affecting goods ranging from fresh produce to industrial parts.
The strike has led to a complete shutdown of container operations at major ports from Maine to Texas. The disruption impacts the shipment of a wide variety of goods, including bananas, European beer, wine, furniture, clothing, household items, and essential parts for American factories. The port of New York and New Jersey, the nation’s third-largest by cargo volume, is among the affected ports.
The Port of Wilmington in Delaware, which handles a significant portion of the nation’s banana imports, has also been hit. According to the American Farm Bureau, the struck ports are responsible for about 1.2 million metric tons of bananas annually, representing roughly one-quarter of the nation’s supply.
If the strike continues for an extended period, experts warn of possible shortages of consumer goods, leading to price hikes, especially as the U.S. approaches the holiday season. While some holiday goods have already been shipped to retailers, perishable items like fruits and vegetables could become harder to find or more expensive if the strike is prolonged. Industrial goods, alcohol, and imported furniture might also see delays.
The U.S. Department of Agriculture reassured consumers that significant changes to food availability or prices are unlikely in the short term, but prolonged disruptions could affect supply chains.
The strike follows the expiration of the contract between the ILA and the United States Maritime Alliance (USMX), which represents major shipping lines and terminal operators. The ILA is pushing for a $5-an-hour pay increase each year over six years, which would raise top pay from $39 to $69 an hour, amounting to a 77% increase over the life of the contract. The USMX has offered wage increases exceeding 50% over six years, but negotiations have stalled.
Another point of contention is the use of automation at the ports. The union argues that increased automation threatens jobs, while the USMX insists on keeping current contract language on automation. ILA President Harold Daggett stated that without stronger protections against automation, he would not return to the negotiating table.
More than 200 business groups, including the U.S. Chamber of Commerce, have urged the White House to intervene, warning that the strike could disrupt supply chains and hurt the economy. However, President Biden has indicated that he does not intend to exercise his powers under the Taft-Hartley Act, stating, “It’s collective bargaining, and I don’t believe in Taft-Hartley.” The strike is the first at these ports since 1977.