A major maritime workers strike is set to begin on Tuesday, and it means a likely HALT of imports and exports of key goods — from cars to food — across the East and Gulf Coasts.
The International Longshoremen's Association, the largest union of maritime workers in the US, announced last week that it was prepared to strike on October 1 if demands in their union contract, primarily higher wages, are not met. On Sunday, the union announced the strike is set to go ahead as planned after contract negotiations stalled.
"United States Maritime Alliance (USMX) refuses to address a half-century of wage subjugation where Ocean Carriers profits skyrocketed from millions to mega-billion dollars, while ILA longshore wages remained flat," the union said in a statement posted to Facebook. "ILA unity remains strong and is growing."
The planned strike would include 85,000 members of the International Longshoremen's Association, as well as "tens of thousands of dockworkers and maritime workers around the world," the union's statement added, striking at all Atlantic and Gulf Coast ports from Maine to Texas.
According to an ILA press release, the union wrote in a letter to its membership that its workers, who primarily work on shipping docks to load, unload, and inspect cargo and operate heavy machinery, are "struggling to pay their mortgages and rent, car payments, groceries, utility bills, taxes, and in some cases, their children's education," emphasizing the need for boosted pay in its upcoming contract.
The strike, if it takes place, will have widespread implications across the US, with significant shipment delays that could set off a chain reaction of disruptions. It would be the first coast-wide strike by ILA members since 1977, Reuters reported.
"A prolonged strike could lead to weeks, or possibly months, of shipping delays and backlogs, worsened by limited rerouting options, high costs and time constraints," Abe Eshkenazi, CEO of the Association for Supply Chain Management, told 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 stoppage."
According to the National Association of Manufacturers, over half of imports and exports come through the East and Gulf Coast ports, handling pharmaceuticals, vehicles, and retail, among other things, and generating an average of over $2.1 billion each day. Depending on the length of the strike, supply-chain disruptions could also lead to price hikes for consumers.
The United States Maritime Alliance, which represents the companies that employ longshoremen, said on September 23 that despite attempts to resume bargaining with the ILA they "have been unable to schedule a meeting to continue negotiations."
A port strike will bring to a halt, about $5 Billion A DAY in commercial activity! Disruption to the U.S. Supply Chain will be fast and serious.
Most U.S. companies run on a "just-in-time" inventory system. They do not order huge quantities of replacement goods just to store them in warehouses; that's far too expensive.
So companies know how much they sell each month, and how fast, and they order accordingly. Now, those orders cannot get through; replacement inventory cannot arrive.
Today is the very last day you can be assured of getting a lot of the products you may need, that are imported into the country. If you don't have it by today, you may not be able to get it.
Stock-up. Now.
