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US dockworkers launch coast-wide strike affecting global shipping and supply chains

US dockworkers launch coast-wide strike affecting global shipping and supply chains

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Tens of thousands of dockworkers across the US East Coast and Gulf of Mexico went on strike on October 1, with the International Longshoremen's Association (ILA) demanding a 77% pay rise over six years. The strike, which involves 36 ports from Maine to Texas, is expected to paralyze some 14 ports and cause delays in container traffic. The ILA has rejected a 50% pay rise offer over six years and promises of limits on automation from the US Maritime Alliance (USMX). The strike is the first coast-wide strike in almost 50 years and has thrown global supply chains into disarray, leading to higher costs for importers, distributors, and customers. The strike involves approximately 45,000 dockworkers and has been described as a significant challenge to the White House and Vice President Kamala Harris's campaign.

White House
1. The president has directed his team to convey his message directly to both sides that they need to be at the table and negotiating in good faith – fairly and quickly.
Harold Daggett
International Longshoremen's Association
1. We never shut the ports down during Covid, ILA members lost their lives while people worked from home.
2. We are prepared to fight as long as necessary, to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve.
3. They (foreign owned operators) want to come into America and build fully automated terminals and get rid of American jobs.
4. They want to go automation. They want more money now. Get rid of these men. We don't need them no more … If it was up to them, they would like to see everybody lose their jobs.
Ikea
1. We are closely monitoring the situation and hope for an agreement between the parties as soon as possible.
US Maritime Alliance
1. We have demonstrated a commitment to doing our part to end the completely avoidable ILA strike.
Andrew Coldrey
CH Robinson
1. For the Christmas sales, I don't really see any problems, but it's more the ongoing effect and inflation impact is the risk.
2. Absolutely, it'll have a big flow-on impact on inflation.
3. If it's a one-week strike, [it] has about a six-week flow-on impact.
4. When the Ever Given got stuck in the Suez Canal … it was one week in one location, and then it probably took six months before supply chains caught up.
Jay Timmons
National Association of Manufacturers
1. Billions of dollars of goods — from food to vehicles to electronics — rely on access to the east and gulf Coast ports.
Bradley Saunders
Capital Economics
1. The strike at East and Gulf Coast ports is unlikely to trigger major economic disruption. Many retailers have made plans in anticipation of the strike and our sense is that, this close to the election and despite recent denials, President Biden would have little choice but to step in and invoke back-to-work legislation if the sides fail to reach an agreement.
Tom Jensen
Capital Economics
1. We don't get so many toys out of the US, as opposed to what we do out of China. So in terms of machinery … your dad's Christmas might get spoiled, but the [impact on] kids might not be as severe.