As the largest dockworker strike in nearly five decades continues into its third day, at least 45 container ships are stranded outside major US ports on the East and Gulf coasts, Reuters reports.
The strike, initiated by the International Longshoremen’s Association (ILA) after contract negotiations broke down, is causing significant disruption in supply chains, with goods ranging from food to automotive parts stuck in transit. Economists warn that the longer the strike lasts, the greater the potential impact on consumer prices and product availability.
Negotiations between the ILA, which represents around 45,000 dockworkers from Maine to Texas, and the United States Maritime Alliance (USMX) have stalled. The ILA is seeking a significant pay raise and assurances that automation projects, which the union fears could eliminate jobs, be halted. While the USMX had offered a 50% pay increase, the union deemed it insufficient to address their broader concerns.
No new talks have been scheduled, but port employers, under pressure from the White House, have indicated they are open to further discussions. The Biden administration has urged employers to increase their pay offer to reach a resolution, citing the shipping industry’s recent record profits since the COVID-19 pandemic. However, the administration has also made it clear it will not intervene with federal authority to halt the strike, despite calls from the National Retail Federation and other trade groups.
The backlog of ships, which was just three before the strike began on Sunday, has grown rapidly, with at least 45 vessels now anchored outside ports. Analysts warn that this number could double by the end of the week if no resolution is reached. According to Jena Santoro from Everstream Analytics, some ships are opting to wait out the strike in hopes of a quick resolution, rather than rerouting to West Coast ports—a costly and time-consuming alternative that would involve navigating the Panama Canal and delaying deliveries by weeks.
The strike affects 36 key ports, including major hubs in New York, Baltimore, and Houston, which handle a wide array of containerized goods. While economists do not expect an immediate spike in consumer prices—thanks to accelerated shipments in recent months—prolonged closures could eventually lead to shortages and price hikes, particularly in the food sector.
Industry experts are closely monitoring the situation, as the vessel congestion could take weeks or even months to clear, depending on how long the strike lasts. For now, both sides remain firm in their positions, with the ILA demanding significant changes and the USMX reiterating its commitment to negotiate without preconditions.
