Tens of thousands of dockworkers kicked off a strike at East Coast and Gulf of Mexico ports on Tuesday, leaving stacks of shipping containers stranded on docks and ships stuck outside harbors—posing a big threat to the economy just five weeks before the election.
The strike immediately disrupted ports that handle more than half of the U.S.’s cargo container trade. The longer the strike lasts, the more the impact will spread across the country, potentially costing hundreds of millions of dollars a day.
As of early Tuesday, no clear path had emerged to resolve the standoff between the International Longshoremen’s Association (ILA) and shipping companies and port operators. The U.S. Maritime Alliance (USMX), which represents the companies, said that while negotiators had exchanged offers recently—including a proposal of 50% raises—no deal had been reached. They had hoped for a contract extension to keep talks going.
Harold Daggett, president of the ILA, has blamed the strike on the greed of international shipping companies, arguing that longshoremen deserve a bigger cut of the massive profits these operators have made, especially after working through the pandemic.
In a video shared by the union on Facebook, Daggett addressed workers outside Maher Terminal in New Jersey on Tuesday, declaring, “Nothing’s moving without us,” and promising the union would win. The ILA represents 47,000 workers responsible for loading, unloading, and maintaining equipment at ports.
Late Monday, a small group of energized longshoremen gathered near the Port of Baltimore’s Seagirt Marine Terminal, tapping their strike signs together. Their signs read, “No Work Without a Fair Contract,” “Profit Over People is Unacceptable,” and “Machines Don’t Feed Families.” Bus drivers, taxi drivers, and even a car hauler honked in solidarity as they passed by.
Meanwhile, about 150 dockworkers picketed at Dundalk Marine Terminal, chanting, “Who are we? ILA. What are we going to do? Shut ’em down!”
The White House said Tuesday it had been working nonstop with both sides to try and prevent the strike. On Monday, the U.S. Chamber of Commerce called on President Biden to invoke the Taft-Hartley Act, which could force an 80-day “cooling-off” period for negotiations. However, the administration has said Biden has no plans to use those powers, giving the union more leverage.
This strike is the first of its kind by the ILA since 1977, when longshoremen walked off the job for more than six weeks. Unlike back then, today’s strike could have a much bigger impact, with imports of everything from cars to food likely to be affected. Analysts predict the economic costs could quickly reach billions.
Since the ILA has been hinting at a strike for months, many big companies have been able to prepare by ordering holiday goods early or diverting shipments to the West Coast. White House officials and analysts are confident that supply chains can hold up for now, but the situation will worsen the longer the strike drags on.
