U.S. port strike looms by October 1, portending economic gloom
By Sam Klebanov, Morning Brew
US ports are bracing for a tempest, but the ominous choppiness is in the negotiating room. Dock workers on the East and Gulf Coasts are preparing to walk off the job if their union can’t negotiate a new contract with shipping companies by October 1, threatening a throwback to pandemic-era supply chain bottlenecks.
The International Longshoremen’s Association union and the United States Maritime Alliance, the trade organization representing port operators, remain oceans apart in their talks. The main sticking points are worker pay and plans to automate certain container operations.
The union warns that up to 45,000 port workers could strike. The labor stoppages would disrupt major ports that handle 60% of US shipping traffic, per Oxford Economics.
JPMorgan analysts say a work stoppage could cause $5 billion in economic damage per day.
Related news:
Shippers scramble for workarounds ahead of looming US East Coast port strike (Reuters)
A Looming East Coast Port Strike Could Shake the Economy (New York Times)
Hard-to-find supplies during Covid (USA Today)
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