Thousands of dockworkers at ports from New England to Texas went on strike just after midnight on Tuesday as they rally for higher pay and more job security, The Associated Press reported.
The work stoppage, the first at East and Gulf Coast ports since 1977, follows a lengthy impasse in labor talks between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX), a shipping industry group representing terminal operators and ocean carriers.
The strike was expected to involve 25,000 workers, according to USMX, and close 14 ports: Baltimore; Boston; Charleston, South Carolina; Jacksonville, Florida; Miami; Houston; Mobile, Alabama; New Orleans; New York/New Jersey; Norfolk, Virginia; Philadelphia; Savannah, Georgia; Tampa, Florida; and Wilmington, Delaware.
The ILA is demanding sizable wage hikes and a complete ban on the use of automated cranes, gates and container-moving trucks in unloading or loading freight.
The ports affected by the strike handle roughly half of the country’s ship cargo. Experts say the economic impact of a prolonged work stoppage could be steep, potentially raising the cost of consumer goods and creating shortages ahead of the holidays.
A one-week strike could cost the U.S. economy nearly $3.8 billion and increase the cost of consumer goods, according to the Conference Board.
For consumers and businesses, a longer strike could hamper shipments of products such as bananas, manufacturing components, plywood, and raw materials such as cotton and copper. Fresh meat and other refrigerated foods also could spoil, resulting in shortages and increased prices.
Still, many businesses have been preparing for months, stockpiling products that could be disrupted by the port shutdowns.
Despite the massive port of New York and New Jersey being set to close in the labor action, New York Gov. Kathy Hochul said in a news conference on Monday that New York does not expect shortages of essential items anytime soon and advised consumers against stockpiling goods.