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HomeBusiness21st Century ChallengesWith a Port Strike Underway, What Comes Next?

With a Port Strike Underway, What Comes Next?

It finally happened after months of dire warnings and negotiations: a port strike is underway on the U.S. East Coast and Gulf Coast. Workers from the International Longshoremen’s Association (ILA) went on strike as of midnight yesterday, October 1st. Negotiations between the ILA and the U.S. Maritime Alliance (USMX) were ultimately unsuccessful and port workers walked off the job. Overnight, the shipping world and the global supply chain was back in the news in the most prominent moment since the Covid era.

Now, 45,000 dockworkers at numerous U.S. East Coast and Gulf Coast ports are off the job. The world is watching closely. Read our latest update on what’s happening and what’s to come below.

What’s the latest with the ongoing strike?

The President of the ILA, Harold Daggett, is fast becoming a household name overnight after saying yesterday that he, through his position, had the power to “cripple” the U.S. He added “They won’t be able to do anything in this country without my people.”

With the ILA taking a defiant stance, what was on everyone’s mind yesterday was what the U.S. government would do, if anything, to intervene in the ongoing labor dispute. Yesterday, President Joe Biden was adamant he would not intervene under a long-standing labor law, the Labor Management Relations Act of 1947 (known as the Taft-Hartley Act). Today, Vice President Kamala Harris joined Biden in showing solidarity with the striking workers, saying they deserve fair wages.

What comes next for striking workers and the supply chain?

Economists and politicians, along with the American people, are watching closely to see if signs emerge of the strike ending sooner than later. The cost of a prolonged strike is enormous and enough to damage the U.S. economy, even if many goods arrive on-time due to planning by shippers, carriers, and businesses over the past few months.

A consensus view was emerging yesterday that a strike that ended by the end of this week would limit the economic damage and disruption on the U.S. economy. It is a real question whether the U.S. government intervenes, even after pro-strike comments by Biden and Harris. After all, the cost of a prolonged strike must be taken into account by all parties involved.

Striking workers are in the spotlight – will it help or hurt their cause?

Striking workers are feeling the spotlight due to the national coverage of the port strike. At the end of the day, the workers’ bargaining power will be diminished if the American people turn against the strike due to economic consequences, so that will be factor that all parties will be watching. If a prolonged strike happens, it will put pressure on port operators and businesses to automate more aspects of the supply chain sooner than may have happened without a strike. For this reason, the union is likely to weigh this factor in its future planning and timing related to the ongoing strike.

We will continue to provide updates on the strike as it continues.

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