US East and Gulf Coast Port Workers Set to Strike, Threatening $5 Billion Daily Economic Loss

45,000 port workers plan to strike at midnight, threatening disruptions to US shipping, inflation spikes, and economic losses of up to $5 billion per day.

By Thea Felicity

Sep 30 2024, 09:50 AM EDT

https://www.gettyimages.co.uk/detail/news-photo/thousands-of-shipping-containers-in-the-port-of-los-angeles-news-photo/1435699 — LONG BEACH, CA - SEPTEMBER 27: Thousands of shipping containers in the Port of Los Angeles are left dockside during a two-day lockout of longshoremen in every West Coast port that began at 6 p.m. on September 27, 2002 in Long Beach, California. (Photo by David McNew/Getty Images)

This Monday at midnight, US East and Gulf Coast port employees will prepare to strike.

According to Reuters, this move will halt not just the port traffic from Maine to Texas but also cost the US economy up to $5 billion per day. The same report shared that the labor agreement between the United States Maritime Alliance (USMX) and the International Longshoremen's Association (ILA), representing 45,000 port workers, will expire this Monday.

Unfortunately, both parties have reached a standoff deal due to pay issues. In return, pushing ILA workers to start a strike at 12:01 AM ET on Tuesday, the first coast-wide strike made by the alliance since 1977. Responsible for half of the country's shipping, the lack of negotiations and impending strike will be a severe dilemma for the US.

Impact of Port Workers Strike

CNN explained that the ILA promised the strike wouldn't affect military cargo or cruise ships. However, it will disrupt the movement of goods such as food and automobiles at major ports. Prolonging the situation will lead to inflation and job loss, especially during the peak of US presidential campaigns.

Harold Daggett, leader of ILA, stated that it will cripple all operations in the US. Earlier this year, the Reuters report learned that Daggett threatened to shut down 35 ports unless APM terminals and Maerks agreed to meet wage increase demands.

Businesses relying heavily on ocean shipping for importing and exporting products are wary about the situation and have criticized the ILA for holding the US over a barrel. This affects retail companies preparing to disrupt their services as the holiday season approaches.