US East Coast dockworkers go on strike, disrupting 50% of national ocean shipping

Posted on October 1, 2024   |  

Dockworkers on the US East Coast and Gulf Coast started a strike on October 1, halting about half of the nation's ocean shipping due to failed wage negotiations.

The strike impacts shipments of essential goods, including food and cars, across many ports from Maine to Texas.

Experts predict the disruption could cost the economy billions daily, threatening jobs and driving up inflation.

The International Longshoremen’s Association (ILA), which represents 45,000 port workers, was negotiating a new six-year contract with the United States Maritime Alliance (USMX) before the September 30 deadline.

The expiration of the master agreement led to work stoppages at the Port of Virginia and other East and Gulf Coast ports.

This marks the ILA’s first strike since 1977, raising concerns for businesses that rely on ocean shipping for imports and exports.

The strike affects 36 ports that handle various containerized goods like bananas, clothing, and automobiles.

Retailers, which account for about half of all container shipping volume, are activating backup plans in preparation for the important winter holiday sales season.