Welcome to our blog, where we dive into the latest news and updates on the potential strike that could cost the U.S. billions of dollars in economic impact. According to experts, each day of a strike could amount to a whopping $5 billion in losses.
The clock is ticking as the U.S. Maritime Alliance (USMX) and International Longshoreman’s Association (ILA) have until the end of the month to reach an agreement on a new contract to avoid a strike. The USMX represents companies that move cargo at ports, while the ILA represents over 40,000 workers employed at ports from Brownsville, Texas to Maine.
The ILA is pushing for higher wages and protections from automation, with ILA International President Harold Daggett expressing dissatisfaction with the current offers. On the other hand, USMX stated that despite their attempts to engage in negotiations, they have been unable to schedule a meeting with the ILA.
If a strike occurs, it would shut down all ports on the Atlantic and Gulf Coasts, impacting goods like apparel, footwear, and accessories imports that pass through these ports. Supply chain expert Margaret Kidd warns that the U.S. could face significant losses, estimating $5 billion per day of a strike.
While certain goods like perishables and automotive supplies would be affected, Kidd reassures consumers that the situation would not lead to the same supply chain disruptions seen during the pandemic. Port Houston, though not involved in the negotiations, is closely monitoring the situation and would close certain terminals in the event of a strike.
Stay tuned for more updates on this critical issue that could have far-reaching consequences for the nation’s economy.
