Major U.S. ports will remain closed until dockworkers’ pay demands are met, according to Harold Daggett, president of the International Longshoremen’s Association (ILA). Speaking on a picket line in New Jersey, Daggett declared, “We’re going to fight for it and we’re going to win or this port will never open up again,” emphasizing his determination. The strike, involving tens of thousands of dockworkers along the east and gulf coasts, aims to secure a better labor deal and has already raised concerns about disruptions to global trade and the U.S. economy.
Businesses are preparing for a potentially extended shutdown, which could have severe ramifications for the supply chain. President Joe Biden has thus far rejected calls from major business groups to use federal authority to reopen the ports temporarily. Instead, he expressed that it is only fair for workers who risked their safety during the pandemic to receive a meaningful wage increase. “Now is not the time for ocean carriers to refuse to negotiate a fair wage for these essential workers while raking in record profits,” he stated.
This strike is the first of its kind for the ILA since 1977, resulting in a halt of container traffic across 14 key ports, including those in New York, Georgia, and Texas. These ports handle over a third of the U.S.’s imports and exports, meaning delays could significantly affect goods deliveries for both businesses and consumers.
President Biden has directed officials to monitor the situation closely, particularly for any unfair price hikes resulting from potential shortages.
Before the strike, negotiations for a new contract had stalled for months. However, the United States Maritime Alliance (USMX), which represents shipping companies and port associations, has indicated that both sides have resumed discussions. Under the previous contract, which expired recently, dockworkers earned an hourly wage ranging from $20 to $39, along with various benefits linked to container traffic.
USMX reported that its latest proposal includes nearly a 50% wage increase, tripling company contributions to retirement funds and improving healthcare provisions, among other benefits. They described the offer as exceeding “every other recent union settlement” and labeled the current impasse as “completely unavoidable.” The organization expressed hope that the union would engage in meaningful negotiations to find a resolution.
In contrast, Daggett stated that no significant proposals have emerged to bridge the gap between the union and the shipping companies. He expressed a readiness to keep the ports closed until companies agree to raise hourly pay by $5 for each year of the new contract. The ILA, which represents around 47,000 active members, is also advocating for protections against workplace automation.
“I’m going to fight for it because those greedy companies are making billions of dollars and they don’t want to share,” Daggett said. He emphasized the need to secure the financial well-being of his members for the long term.
If the strike continues, experts warn of increasing prices and shortages in the U.S., as shipping delays ripple through the global economy. Anne-Sophie Fribourg, a vice president at the freight forwarding company Zencargo, noted that ships are already anchoring outside ports, waiting to see how the situation unfolds. “The disruption is going to be massive if the strike lasts,” she stated.
Currently, around 100,000 containers are stuck in the New York area, with an additional 35 ships expected to arrive this week, according to the Port Authority of New York and New Jersey.
Danny Reynolds, who owns Stephenson’s, a clothing store in Elkhart, Indiana, has expressed concern about his inventory due to the strike. He paid extra to expedite shipments of sweaters and coats before the strike began, but about 25% of his inventory has yet to arrive. He is particularly worried about the delivery of special-order bridal gowns for upcoming weddings in November and December.
“Where we get concerned is when we have special order merchandise for people’s wedding days that could be locked up on a ship unable to reach us. That’s a hard thing to explain to a potential bride,” he said, noting that around 75% of his merchandise goes through east coast ports.
While Reynolds believes his business can manage through the year-end, he fears the broader implications of the strike. “I think the results to the economy could be devastating if this goes on,” he cautioned, urging the Biden administration to intervene. “I think it’s beyond time for the Biden administration to sit down with them and see what can be done to resolve this.”
