"ILA Longshoremen Strike East and Gulf Coast Ports, Halting Billions in Trade"

Approximately 50,000 members of the International Longshoremen’s Association (ILA) commenced a strike at East Coast and Gulf Coast ports from New England to Texas starting at 12:01 a.m. ET on October 1. This marks the union’s first strike since 1977, resulting from failed negotiations over a new contract with port management.

The strike affects 14 major ports—including Boston, New York/New Jersey, Philadelphia, and Miami—where between 43% and 49% of all U.S. imports transit, amounting to billions in trade monthly. The ILA rejected an offer from the United States Maritime Alliance (USMX) that included a nearly 50% wage increase over six years.

As preparations for the strike unfolded, ILA President Harold Daggett, who participated in the last strike in 1977, expressed the determination of union members, stating, “We’ll crush them.” The strike is expected to significantly disrupt supply chains, particularly affecting the food and automobile industries.

Shana Wray of FourKites highlighted that the timing of the strike is particularly unfortunate, as it follows Hurricane Helene, which already caused delays at several ports. “A disruption of a week or two will create some backlogs, but anything longer will lead to shortages and upward price pressures,” said Adam Kamins, economist at Moody’s Analytics.

The impact of the strike could be severe; a one-week shutdown could cost the U.S. economy approximately $3.78 billion and disrupt supply chains into mid-November. Industries heavily reliant on these ports, including pharmaceuticals and retail, are bracing for significant repercussions.

Walmart, Home Depot, and Ikea are among the top importers likely to be affected, as they rely on these ports for essential goods. The ILA has made it clear that all members, including those not under the expired contract, will support the strike.

The Teamsters union has expressed solidarity with the ILA, urging their members not to cross picket lines. Meanwhile, the Biden administration is navigating a delicate political situation, emphasizing that it will not invoke the Taft-Hartley Act to force the longshoremen back to work.

As negotiations continue, the clock is ticking for both the ILA and USMX to reach a resolution before the strike exacerbates supply chain issues critical to the U.S. economy.