NEW YORK (AP) – This week, the union representing about 45,000 longshoremen went on strike for the first time since 1977, shutting down U.S. ports from Maine to Texas.
Workers began walking picket lines early Tuesday near ports along the East and Gulf coasts.
Had the shutdown lasted more than a few weeks, it would have led to rising prices and potential shortages across the country as the holiday season and a close presidential election approach.
But the union representing striking U.S. longshoremen, the International Longshoremen’s Association, agreed Thursday to suspend the strike until Jan. 15 to give them time to negotiate a new contract. reached. Union members are expected to return to work immediately, at least until January.
What is the problem with the longshoremen’s strike?
The union is demanding significant wage increases and a complete ban on automation of the cranes, gates and container-moving trucks used to load and unload cargo at 36 U.S. ports. These ports handle about half of the country’s cargo from ships.
The contract between ILA and the U.S. Maritime Alliance, which represents the port, expired on Tuesday.
The union’s initial demand was for a 77% pay increase over the six years of the contract, which Daggett said would offset inflation and years of small raises. ILA members earn a base salary of about $81,000 a year, but some earn more than $200,000 a year with generous overtime pay.
On Monday, before workers took to the picket lines, the alliance announced it had increased its offer to 50% raises over six years and promised to maintain automation limits from the old contract. The coalition also announced proposals to triple employer contributions to retirement plans and strengthen health care options.
Which ports were affected?
While any port can handle all types of goods, some ports specialize in handling goods from specific industries. Ports affected by the closure included Baltimore and Brunswick, Georgia, the top two busiest automobile ports. Philadelphia prioritizes fruits and vegetables. In New Orleans, we mainly handle coffee from South America and Southeast Asia, various medicines from Mexico and Northern Europe, and wood products from Asia and South America.
Other major ports affected include Boston. New York/New Jersey; Norfolk, Virginia. Wilmington, North Carolina. Charleston, South Carolina. Savannah, Georgia. Tampa, Florida. Mobile, Alabama. And Houston.
Can the government intervene?
If the strike was deemed a danger to the health of the U.S. economy, President Joe Biden could have sought a court order requiring an 80-day cooling-off period under the Taft-Hartley Act of 1947. Then the strike will be called off.
But in an exchange with reporters Sunday, Biden said “no” when asked if he planned to intervene.
“I don’t trust Taft-Hartley because this is collective bargaining,” Biden said.
How are countries responding?
Florida Gov. Ron DeSantis orders the Florida National Guard and the Florida National Guard to “maintain order” and, in some cases, help resume operations at the state’s ports as residents and businesses recover from Hurricane Helen. Then he said.
“This could greatly disrupt the hurricane recovery and harm the victims of the storm,” DeSantis said at a Thursday news conference. He spoke before news broke that the union had agreed to call off the strike.
Governor Wes Moore of Maryland, Governor Maura Healey of Massachusetts, Governor Phil Murphy of New Jersey, and Governor Kathy Hochul of New York state issued a joint statement saying they are closely monitoring the situation regarding price gouging. said.
How will this impact consumers?
If the strike is halted, consumers probably won’t notice any major shortages or price increases. If the outage had lasted more than a month, the story would have been different, depending on what you were shopping for. Most holiday retail items have already arrived from overseas, so a buffer exists. Had it continued, prices for everything from fruits and vegetables to cars could have risen, at least temporarily.
This would have been unwelcome news after supply chain disruptions caused prices to soar at the end of the pandemic, and it could have been politically damaging with Election Day about a month away.
The hands of the “sold out” clock never stop
Containers loaded with perishable bananas were stranded at several ports.
Before the suspension was announced, Agriculture Secretary Tom Vilsack said limiting the duration of strikes was key to preventing shortages and price hikes.
Companies had contingency plans in place
Since the massive supply chain disruptions of 2021, retailers have adapted to supply chain disruptions becoming the new normal, says the owner of a mini-chain of Patina Gift Shops in the Twin Cities, Minnesota area. says Rick Haas.
“The best approach for Patina was to secure orders early and store products in warehouses and backrooms to ensure availability of key items,” Haas said.
Still, storing these items for long periods of time can impact inflation at the register as retailers have to recover or absorb storage costs.
Jay Foreman, CEO of Boca Raton, Florida-based Basic Fun (maker of Care Bears and Lincoln Logs), has already moved all of his toy company’s container shipments from East Coast to West Coast ports, primarily It has moved to Los Angeles and Long Beach. That also comes at a cost.
Because Basic Fun’s price for the next 10 months is locked in with retailers, his company will have to absorb 10% to 20% additional costs with this move. However, Foreman said he would consider raising prices in the second half of 2025 if the strike were to be prolonged.
Daniel Vasquez, owner of Dynamic Auto Movers, a Miami-based import/export company, has increased his inventory of vehicles, especially those that take longer to ship, in anticipation of the strike.
He, too, has moved away from relying on a single port or shipping partner and expanded its relationships with smaller ports and shipping companies that can bypass congested areas.
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Associated Press writer Brendan Farrington in Tallahassee, Florida; Stephen Groves of Dover, Delaware; Anthony Izaguirre, of Albany, New York; Tom Krisher of Detroit; and Colleen Long in Washington contributed to this report.
