Businesses in the U.S. are bracing for a port strike that threatens to stretch along the East Coast and into the Gulf of Mexico, potentially costing the economy $5 billion U.S. per day.
Port workers are set to go on strike Oct. 1, halting container shipments from Maine to Texas that handle half of ocean shipments in the U.S.
The strike in the U.S. could also disrupt shipping in Canada, notably at ports in Halifax, Nova Scotia and Montreal, Quebec.
The strike comes after contract negotiations broke down between the International Longshoremen’s Association (ILA) union that represents 45,000 port workers and the United States Maritime Alliance (USMX) employer group.
The current contract between the two groups expires on Sept. 30 with collective bargaining at an impasse over the issue of pay raises for workers.
If port workers do walk off the job, it will be the first coastal strike in the U.S. since 1977.
No negotiations are taking place and none are planned before the current contract expires, making a port strike all but certain to occur.
While the strike is not expected to impact military cargo shipments or cruise ships, it is expected to impact shipments of everything from food to motor vehicles.
The cost of the strike has been estimated at $5 billion U.S. a day, and some economists have warned that it could stoke inflation weeks ahead of the U.S. presidential election.
Several prominent business groups in the U.S. are urging the union and employer to return to the bargaining table and avoid a potentially damaging port strike.
U.S. President Joe Biden, who is pro-labour, has said that he does not intend to intervene to prevent a strike if dockworkers fail to reach a new contract.
