From medicine to gifts to prices, what will a dock workers strike affect

“A sleeping giant is poised to roar on Tuesday, October 1, 2024, unless a new master contract agreement is in place,” ILA President Harold Daggett said in a statement.

According to an ILA press release, the union wrote in a letter to its members that its workers, working mainly at shipping docks to load, unload and inspect goods and operate heavy machinery, “struggling to pay their mortgages and rent, car payments, groceries, utility bills, taxes and, in some cases, their children’s education,” stressing the need for an increased payout in his upcoming contract.

A strike would have widespread implications in the US, with significant delivery delays could set off a chain reaction of outages.

“A prolonged strike could lead to weeks or possibly months of shipping delays and delays, compounded by limited rerouting options, high costs and time constraints,” said Abe Eshkenazi, CEO of the Supply Chain Management Association, for BI. “The supply chain is inextricably linked, and as we enter the busiest shopping season of the year, businesses, retailers and consumers alike will feel the impact of a shutdown.”

According to the National Association of Manufacturers, more than half of imports and exports come through Eastern and Gulf Coast ports, handling pharmaceuticals, vehicles and retail, among others, and generating an average of more than $2.1 billion each day. Depending on the duration of the strike, supply chain disruptions could also lead to higher prices for consumers.

The United States Maritime Alliance, which represents companies that employ workers, said on September 23 that despite attempts to resume negotiations with The ILA “were unable to schedule a meeting to continue negotiations”.

“Our goal remains the same – we want to negotiate and avoid a strike, but time is running out if the ILA is unwilling to return to the table,” USMX added. In a statement on Monday, the ILA said the parties had communicated several times in recent weeks but that an impasse remained in place on wage offers.

A strike could delay deliveries and trigger price increases

If the union strikes, all industries will be affected — but time-sensitive industries such as autos or pharmaceuticals would face serious disruption immediately, wrote Mia Ginter, director of ocean freight and export products at CH Robinson , in an August blog. post.

“Many auto parts and components are imported through the East Coast, so the risk of production delays would be high,” Ginter said.

At the Port Authority of New York and New Jersey, operators are trying to bring in “as many ships as possible” before a potential strike, director Bethann Rooney said at a news conference. This includes encouraging shippers to remove as much cargo as “humanely” and as quickly as possible.

The retail industry could also face disruption from the strike.

“Many retailers have already taken steps to mitigate the potential impact of a strike by bringing in products early or moving products to the West Coast,” said Jonathan Gold, the National Retail Federation’s vice president of supply chain and customs policy. for BI. “The global supply chain is a complex system and even a minor disruption would have a negative impact and cause delays at a critical time for both retailers and consumers.”

Gold wrote in early September that holiday shipments likely won’t arrive in time: “Manufacturers may not receive parts, materials and supplies needed for production, resulting in assembly line shutdowns. And farmers won’t be able to take their produce to overseas markets, which could lead to lost sales.”

The Port of New York and New Jersey ranks fourth among the nation’s top 25 ports for total tonnage, according to data from the Bureau of Transportation Statistics. An analysis by the non-profit research group Miter found that the strike would have a significant economic impact on the ports of New York and New Jersey, with a daily loss of about $640 million.

“We are coordinating with partners along the supply chain to prepare for any potential impact,” PANYNJ spokesman Steve Burns told BI. “For the more than 600,000 regional jobs our port supports and the $240 billion in goods transported here each year, we urge both sides to find common ground and keep goods flowing for the good of the national economy “.

Grace Zwemmer, associate economist at Oxford Economics, wrote in a note in early September that it would likely take four to seven days to clear the backlog for each day the strike continues, “meaning that even a strike two weeks could disrupt supply chains until 2025.” She referred to estimates by Sea-Intelligence, which predicted that a strike would prevent the unloading of 74,000 sea containers each day. In addition, she wrote that the strike would mean it would take longer for manufacturers to receive goods, which would in turn raise prices for consumers.

Meanwhile, trade groups have called on the Biden administration to step in and help negotiate a deal — or at least ensure negotiations continue instead of a strike. They warned that a work stoppage could harm both the economy and consumers.

“A strike at this time would have a devastating impact on the economy, especially as inflation is on a downward trend,” the trade organizations wrote.

Some ports have already begun preparing guidance for customers in case the union goes on strike — the Port of Houston wrote in a memo that it will extend its operating hours ahead of the strike to allow more time for cargo to move with other ports . also struggle to unload shipments in anticipation of the strike.

“Throughout the pandemic, Longshore workers have never taken a day off,” ILA Executive Vice President Dennis Daggett said on Sept. 20. “We made sure the shelves were stocked and the supply chains stayed strong, even though we lost far too many of our own. Now, we need the public’s support, even the corporations that have profited from our hard work refuse to share those profits with the workers who make it possible.”