Agencies
Around 45,000 union workers could go on strike at seaports along the U.S. East and Gulf Coasts on Oct. 1, potentially cutting off vital trade arteries just weeks before the nation’s presidential election.
A JPMorgan analysis projected that a strike could cost the U.S. economy $5 billion daily.
The strike could hit 36 ports that handle about one-half of U.S. ocean imports. That could affect the availability of a range of goods from bananas to clothing to cars shipped via container while creating weeks-long backlogs at ports.
It could also stoke shipping cost increases that may be passed on to voters already frustrated with housing and food inflation, according to logistics experts.The International Longshoremen’s Association (ILA) union representing workers at ports from Maine to Texas and the United States Maritime Alliance employer group appear to have hit an impasse over pay. The current six-year contract expires at midnight on Sept. 30.
A strike at all East Coast and Gulf of Mexico ports would be the first for the ILA since 1977.
The White House said it is not trying to help broker a deal, as it did last year during West Coast talks, and a Biden administration official has said the president would not use his federal powers to block a strike.A widespread and lengthy strike could cause shortages and cost increases across a broad range of industries.
Ports covered by the contract handled $37.8 billion worth of vehicle imports during the 12 months ended June 30, 2024, according to S&P Global Market Intelligence. The Port of Baltimore, Maryland, leads the nation in car shipments.
Auto parts are also a key import on the East Coast and the Gulf of Mexico, with shipments from Europe more difficult to reroute than those from China, logistics experts said.
The ports also lead the U.S. in shipments of machinery, fabricated steel and precision instruments, coming in at $97.4 billion, $16.2 billion and $15.7 billion, respectively, S&P Global Market Intelligence data showed.
About 14% of all U.S. waterborne agricultural exports, by volume, would be at risk from a strike. Over a one-week period, the potential value of those exports is estimated at $318 million, according to the American Farm Bureau Federation.
Additionally, 53% of U.S. waterborne agricultural imports by volume are vulnerable to a strike, leading to a potential economic impact of over $1.1 billion per week, the Farm Bureau said.
Three-quarters of the nation’s banana imports from countries like Guatemala and Ecuador land at ports on the East and Gulf Coasts, said Jason Miller, interim chair of Michigan State University’s department of supply chain management.
Separately, the U.S. imports coffee and cocoa in large volumes and exports cotton.
A strike also would affect container exports of soybeans, soybean meal and other products and would have a significant impact on chilled or frozen meat and eggs, said Mike Steenhoek, executive director of the Soy Transportation Coalition.
