US Dockworker Strike Cripples Port Activity Along the East and Gulf Coasts

Tens of thousands of dockworkers went on strike on Tuesday at ports along the East and Gulf coasts, as the International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) failed to reach a new master contract agreement before the existing six-year agreement expired on Monday, Progressive Railroading reported (10-1-24).

USMX stated late last night that the two sides had traded proposals in recent days and that it offered a 50% wage increase. But ILA officials have said that in addition to wage and benefit proposals, union members also want the contract to include protections from automation. Moreover, the union has said its members deserve a greater share of the hundreds of billions in profits port operators have made in recent years.

Last week, USMX filed an unfair labor practice charge with the National Labor Relations Board that would require the union to resume negotiations.

Carriers, railroads, and ports have been preparing for a potential strike by implementing contingency plans in recent weeks. For example, September 25th was the last day to in-gate controlled refrigerated equipment at CSX origins destined to East Coast ports, and yesterday was the last day for import traffic to depart from ports destined to CSX terminals, according to a company statement issued last week.

The National Retail Federation (NRF) is among stakeholder groups calling on the Biden administration to restore operations at the ports. “A disruption of this scale during this pivotal moment in our nation’s economic recovery will have devastating consequences for American workers, their families, and local communities,” NRF officials said in a press release.

During an 11-day strike on the West Coast in 2002, the reported economic impact was $1 billion per day, and it took six months to recover, noted Alliance for Chemical Distribution President and CEO Eric Byer.

“The ocean shipping market is already in disarray and this strike will result in severe delays, reroutes, and greater uncertainties on the delivery of essential products at countless US ports,” Byer said in a press release.