US East and Gulf Coast Dockworkers to Strike on October 1, Threatening $5 Billion Per Day Economic Disruption

Sep 27, 2024, 11:41 AM

A major strike by dockworkers at ports along the US East and Gulf coasts is set to begin on October 1, 2024, involving approximately 50,000 workers. The strike, which could shut down major container ports from Maine to Texas, is expected to have significant economic repercussions, potentially costing the US economy $5 billion per day. The International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) have been unable to reach an agreement, with key issues including automation and pay. The Biden administration has stated that it does not plan to intervene, despite calls from various stakeholders, including nearly 200 agriculture groups and House Republicans, for federal action to prevent the strike. The potential work stoppage threatens to disrupt supply chains, increase consumer prices, and cause shortages of essential goods, such as medications and food. Businesses, including major retailers like Walmart, IKEA, and Home Depot, are bracing for the impact, with some companies already taking measures to mitigate potential disruptions. The ports in question handle 68% of the country’s containerized exports and 56% of containerized imports.