Financial performance reports of major shipping companies

45,000 East and Gulf Coast Dockworkers Win 62% Wage Hike After First Strike Since 1977

Oct 7, 2024, 06:45 PM

Approximately 45,000 dockworkers at ports from Maine to Texas have gone on strike, their first since 1977, effectively blocking shipments at all East and Gulf Coast ports which handle about half of America's ocean freight. The strike was initiated in response to wage demands, with employers initially claiming they could not afford the increases despite experiencing record profits in recent years. Companies like Maersk, which saw a 292% increase in profit between 2020 and 2021, have experienced unparalleled profits. The dockworkers, represented by the International Longshoremen's Association (ILA), successfully negotiated a 62% wage increase, which was far from excessive and essentially a drop in the bucket compared to the profits. The strike made employers change their stance, demonstrating that they were capable of meeting the workers' wage demands all along. The labor action has significantly impacted shipping companies, with ZIM Integrated Shipping Services (ZIM) experiencing a 25% fall over a five-day trading period, although it saw a slight recovery with a 2% increase pre-market after a rough last week with shipping volume at 85K. The strike could have wider implications for the country's supply chain and potentially the upcoming election.