US East and Gulf coast faces its first large-scale strike by dockworkers in nearly 50 years. The strike by 45,000 dockworkers entered its third day on Thursday, which analysts warn will cost the economy billions of dollars a day, sources told Reuters.
The lack of progress is raising concern among those reliant on shipments that the disruption could be prolonged.
The International Longshoremen’s Association (ILA) union strike has blocked goods from food to automobile shipments across dozens of ports from Maine to Texas.
The ILA, which represents 45,000 port workers, launched its strike on Tuesday after negotiations with the United States Maritime Alliance (USMX) for a new six-year contract collapsed.
The union is seeking a $5-per-hour wage hike each year over six years. The Biden administration wants USMX to raise its offer to dockworkers to secure a deal. According to sources, tentative deal includes a 62% wage hike over six years.
The strike, the ILA’s first major stoppage since 1977, affects 36 ports – including New York, Baltimore and Houston – that handle a range of containerized goods ranging from bananas to clothing to cars. The combined 36 East and Gulf Coast ports handle 57% of US container volume.
European automakers are likely the most-affected by the strike because they rely heavily on those ports, but a longer walkout could prove “debilitating” to the entire sector, industry officials and analysts said.
