The International Longshoremen’s Association announced on Sunday (September 29th) that the union will begin a strike at ports along the East Coast of the United States and the Gulf of Mexico starting on Tuesday. This action could lead to delays in port transportation and disrupt supply chains.
According to Reuters, the union stated in a press release, “The United States Maritime Alliance…refuses to address the wage suppression issue that has lasted for half a century.”
The United States Maritime Alliance, also known as USMX, represents employers in the dock industry along the East Coast of the United States and the Gulf of Mexico.
USMX has not immediately commented on the situation.
If union members strike at ports from Maine to Texas, it would be the first coastwide strike held by the International Longshoremen’s Association since 1977. The affected ports handle approximately half of the country’s maritime freight volume.
A source mentioned that there were no negotiations on Sunday, and there are no plans to hold talks before the midnight deadline on Monday. The union previously stated that the strike would not impact military cargo and cruise traffic.
The White House did not immediately comment on the union’s statement.
President Biden stated earlier on Sunday that if dockworkers fail to secure a new contract by the deadline of October 1st, he does not intend to intervene to prevent the strike.
The strike could result in a halt to the flow of all goods at major ports along the East Coast. This dispute could also jeopardize employment and exacerbate inflation in the weeks leading up to the U.S. presidential election.
For months, the union has been threatening to close the 36 ports it is involved with unless container shipping operator Maersk and its transportation and logistics division, APM Terminals North America, significantly increase worker wages and halt dock automation projects.
This dispute has left businesses that rely on maritime exports or ensure critical goods are imported via sea worried.
On Friday, Biden administration officials met with employer groups from the United States Maritime Alliance, conveying the message that they need to come to the negotiation table fairly, promptly, and in good faith. The Biden administration also relayed this message to the International Longshoremen’s Association earlier.
The employer groups from the USMX accused the International Longshoremen’s Association of refusing to negotiate.