(The Center Square) — Northeast leaders are urging negotiators to reach a deal to resolve the dispute that has shut down cargo ports from Maine to Texas, warning that a prolonged shutdown could have significant ripple effects for the regional economy.
More than 45,000 workers at 14 ports along the East Coast and Gulf of Mexico walked off the job onto the picket line overnight after negotiators from the United States Maritime Alliance, which represents major shipping lines and port operators, and the International Longshoremen’s Association, a union representing dock workers, were unable to reach an agreement on new contracts.
“USMX brought on this strike when they decided to hold firm to foreign owned Ocean Carriers earning billion-dollar profits at United States ports, but not compensate the American ILA longshore workers who perform the labor that brings them their wealth,” said ILA President Harold Daggett, who leads the 85,000-member union, said in a statement.
The strike, which began at midnight, will stop the flow of various goods over the docks of almost all cargo ports along the East and Gulf of Mexico coasts. That includes the Port of New York and New Jersey, the nation’s third-largest port in terms of the volume of cargo handled.
New York Gov. Kathy Hochul issued a statement shortly after midnight saying that New York “has been working around the clock to ensure that our grocery stores and medical facilities have the essential products they need.”
“We’re deeply concerned about the impact that a strike could have on our supply chains, especially when it comes to critical goods like medical supplies and others,” the Democrat said in remarks on Monday.
Hochul said a prolonged shutdown could impact the supply chain for products such as semiconductor chips and automobiles, warning that New Yorkers could start seeing a shortage of consumer goods if the strike lumbers on.
“If you’re expecting to be able to get a new car this week, it may be something you want to check with your dealer,” Hochul said. “It may not be arriving, for example, in the next few weeks.”
But the governor warned retailers against price gouging and urged consumers not to stockpile groceries and other items, saying the state has enough food products to last for weeks.
The Port Authority has been working with the commercial trucking industry to ensure cargo containing essential goods, medical supplies and food products that have already been offloaded are moved to their final destinations, Hochul said. She said that state law requires hospitals and nursing homes to maintain a 60-day stockpile of personal protective equipment and other critical goods.
New Jersey Gov. Phil Murphy, a Democrat, echoed similar concerns and urged the two sides to reach an agreement to resolve the dispute ahead of the busy holiday shopping season.
“The International Longshoremen’s Association plays a vital role in moving goods through our ports and keeping our supply chains moving,” Murphy said in a statement. “We urge the U.S. Maritime Alliance and the ILA to reach a fair agreement that respects workers’ rights and restores operations.”
The labor dispute stems from a new contract that the union says does not properly compensate workers after years of “paltry” wage increases and the impact of inflation. They are also demanding protection against the industry’s automation.
In a statement, USMX said over the past 24 hours, it had traded counter-offers with the longshoreman’s union, including an offer to increase wages by nearly 50% over six years, triple employer contributions to employee retirement plans, strengthen health care options and retain the current contract language around automation and semi-automation. But the union wouldn’t agree to the proposed contract terms, the alliance said.
The U.S. Department of Transportation said in a statement Tuesday that it has been talking with shippers, ocean carriers, ports, railroads, and other supply chain partners for months to prepare for a potential strike and attempt to mitigate bottlenecks in the supply chain.
Transport analysts estimate the shutdown of eastern and Gulf ports could have an economic impact of between $3.8 billion to $4.5 billion a day.
President Joe Biden, who has declined to intervene to stop the strike, issued a statement on Tuesday urging negotiators to work to minimize disruptions from the dispute by reaching an agreement.
“President Biden and Vice President Harris are closely monitoring the strike at East Coast and Gulf Coast ports,” the White House said in a statement hours after the strike began. “The president has directed his team to convey his message directly to both sides that they need to be at the table and negotiating in good faith — fairly and quickly.”
