US port workers strike may cost economy $540 mn per day: Think tank

Meanwhile, an analysis by The Conference Board said a strike by East Coast and Gulf Coast port workers may cause serious economic fallout. Just a one-week strike could cost the US economy $3.78 billion, i.e., $540 million per day.

“A port strike would paralyze US trade and raise prices at a time when consumers and businesses are starting to feel relief from inflation,” said Erin McLaughlin, senior economist at the US think tank. “There’s no easy plan B. While shippers have already begun diverting some cargo to the West Coast, capacity for such alternative options are limited,” he noted.

“The ocean carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA longshore workers an unacceptable wage package that we reject”, ILA said in a release.

“ILA longshore workers deserve to be compensated for the important work they do keeping American commerce moving and growing. It’s disgraceful that most of these foreign-owned shipping companies are engaged in a ‘Make and Take’ operation: They want to make their billion-dollar profits at United States ports, and off the backs of American ILA longshore workers, and take those earnings out of this country and into the pockets of foreign conglomerates,” the release noted.

“In addition, the shippers are gouging their customers that result in increased costs to American consumers. They are now charging $30,000 for a full container, a whopping increase from $6,000 per container just a few weeks ago. In just a short time, they went from 6K, to 18K, then 24K and now $30,000. It’s unheard of and they are doubling their $30,000 fee stuffing the same container from multiple shippers. They are killing the customers,” the release added.

Even a short port strike could cause supply chain interruptions for weeks, The Conference Board noted in a release. For example, a one-week strike starting October 1 could cause slowdowns till mid-November.

East and Gulf Coast port workers are seeking protection against rising automation. ILA said terminal operators have been found using autonomous systems to process trucks without ILA labour, which violates the current contract.

Wage increases of more than 70 per cent are on the table. Under the ILA’s expiring contract signed six years ago, East and Gulf Coast port workers are now earning notably less than what their West Coast counterpoints secured in renegotiations last year.

Fibre2Fashion News Desk (DS)