Dockworkers strike on East, Gulf coasts; the biggest port strike since 1977
More than 45,000 dockworkers began striking at ports across the East and Gulf coasts early this morning, marking the most significant port strike since 1977.
NEW YORK – More than 45,000 dockworkers began striking at ports across the East and Gulf coasts early this morning, marking the most significant port strike since 1977.
According to Reuters, the strike may cost the U.S. as much as $5 billion per day, as items ranging from steel and lumber all the way to furniture and bananas will be choked off from entering the country. Goods are expected to languish on ships until action is taken, with at least 35 ships having to anchor offshore until a deal is reached.
The International Longshoremen’s Assn., the union behind the strike, had been demanding better wages and more specific language against automation, a key hang-up.
On Tuesday morning, ILA president Harold J. Daggett addressed picketers:
“They’re making billions and billions of dollars through the pandemic, and now they’re charging $30k per container. Who are the greedy ones here? These companies over in Europe. They don’t give a f*** about us, but they’re gonna have to start caring because nothing’s going to move without us!
“We’re going to win this thing. They can’t survive for too long,” he continued.
The U.S. Maritime Alliance, representing the ports, said late Monday that both sides had moved off their previous wage offers. The union had been seeking a 77% pay increase over six years, it said, and rejected a last-minute offer to increase wages 50%.
The Biden Administration said a few weeks ago that it would not forcibly block a strike by invoking the Taft-Hartley Act. It’s unclear if the Administration tried to help mediate the strike. On Tuesday morning, Biden urged both parties to be at the table and to negotiate in good faith “fairly and quickly.”
The Teamsters, which represents a million workers across the U.S. and Canada, voiced support for the ILA and told the government to “stay the f*** out of this fight.”
It remains unclear how long the strike will last and how significant it will be.
Rachel Shames, vice president of procurement at CV International, a customs broker and procurement firm, offered her input:
“Terminals have prepared by offering extended gate hours to allow shippers to out-gate as much cargo as possible prior to the work stoppage,” she said. “Ocean carriers have announced a variety of surcharges in anticipation of major congestion, with effective dates throughout October, ranging from $1000-3000 per container, applicable on import and export lanes via the impacted ports. Some carriers have stopped accepting new export bookings. The Federal Maritime Commission has issued guidance reminding carriers and marine terminal operators that the existing regulations on freight, surcharges, detention, and demurrage will be applicable in the event of a strike.
“The impacts of Hurricane Helene are being felt along its path from Florida through North Carolina. Many typical truck and rail routings are impassible, and we expect transportation delays in the affected areas to persist for some time.”
“Ocean freight rates on the major import trades remain relatively flat ahead of the strike, and it’s not yet clear how a work stoppage will impact freight rates in October and beyond.
“For urgent shipments that typically move via EC/GC ports, we recommend utilizing air freight options when possible. Routings via West Coast ports are also available, though those gateways are expected to be inundated with cargo. Rail dwell times from WC ports to inland points are already significant and likely to increase. Transloading and trucking from WC ports is recommended as a rail alternative.”
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