East Coast dockworkers in the United States initiate a strike, significantly impacting international trade flow.
A week before the U.S. presidential election, a labor dispute among dockworkers on the East Coast is causing chaos in international trade. The disputes started on a Tuesday evening, prompted by the International Longshoremen's Association (ILA), which represents around 25,000 employees at 14 major ports. Talks for a fresh contract apparently broke down before the strike. U.S. President Joe Biden urged for "swift and fair" negotiations to resolve the issue.
This labor action could potentially cost the U.S. economy billions of dollars every week. The distribution of food and electronics is being affected. According to the ILA, ports from Maine to Texas are completely gridlocked.
Union president Harold Daggett declared, "We're prepared to keep striking and fighting for as long as required to secure the wages and safeguards from automation that our ILA members merit." The negotiations with the United States Maritime Alliance (USMX) reached a standstill.
This is the first strike by the union since 1977, with the threat of a strike looming for months. The strike is a consequence of the halted negotiations over a new contract, following the expiration of the previous one at around 3 a.m. on Tuesday. It impacts approximately 25,000 ILA members at 14 major U.S. ports, including New York and New Jersey, Boston, Philadelphia, and Houston.
The labor dispute is causing significant disruptions to international trade along the East coast of the United States. The gridlock at ports from Maine to Texas is affecting the distribution of food and electronics.
