Nearly 50,000 members of the International Longshoremen’s Association (ILA) have gone on strike across East and Gulf Coast ports, disrupting the flow of goods into and out of the United States. The strike, which began at midnight, marks one of the most significant work stoppages in recent history, choking off imports and exports and threatening to cause shortages and price hikes.
The Port Authority of New York and New Jersey, as well as the Port of Virginia, have confirmed the strike. A major disagreement between the union and the United States Maritime Alliance (USMX)—which represents foreign-owned shipping lines, terminal operators, and port authorities—led to this escalation.
The strike halts the movement of a wide range of goods, including bananas, European alcohol, clothing, furniture, and auto parts. It also affects exports, potentially harming American businesses that rely on these ports to ship products overseas. ILA President Harold Daggett stated that the strike is a response to USMX’s refusal to provide better wages and protections against automation for American workers, while foreign-owned companies continue to profit.
"We are ready to fight for as long as it takes to secure the wages and protections our members deserve," Daggett said in a statement following the strike's commencement.
USMX has not yet commented on the situation.
The strike could lead to shortages in both consumer and industrial products, which may push prices higher. This disruption comes at a time when the economy is showing signs of recovery from the supply chain crises triggered by the pandemic, raising concerns that it could set back progress.
Major ports affected include the Port of New York and New Jersey, the third-largest by cargo volume in the country. Ports such as Port Wilmington in Delaware, a key hub for bananas, are also impacted. Other perishable items like cherries, as well as imported wine, beer, and spirits, are at risk of being delayed. Additionally, non-perishable goods like furniture and appliances are affected, with retailers already scrambling to stock up for the holiday season ahead of the strike.
This is the first strike at these ports since 1977. While the ILA claims 50,000 members are covered by the contract, USMX estimates there are closer to 25,000 jobs available, with not all union members guaranteed daily work. The two sides have not met in person since June, with USMX accusing the union of failing to negotiate in good faith. USMX recently proposed a six-year contract with wage increases totaling more than 50%, but the union reportedly rejected it. The ILA’s specific demands remain undisclosed, but reports suggest the union is pushing for a 77% total wage increase, with hourly rates rising from $39 to $69 by the end of the contract.
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