US Dockworkers Start Massive Strike

<p>Michael Nagle / Bloomberg / Getty Images</p>

Michael Nagle / Bloomberg / Getty Images

Nisha Gopalan
2 min read

In This Article:


KEY TAKEAWAYS

  • U.S. dockworkers at 14 ports stretching from Maine to Texas handling more than 68% of the country's imports started to strike.

  • The strike threatens to hurt most shipments at East and Gulf Coast ports and accelerate inflation through potentially snarled supply chains.

  • Members of the International Longshoremen's Association (ILA) walked out after the midnight expiration of their contract with the United States Maritime Alliance, which represents large shipping lines.

  • ILA President Harold Daggett said the union is "prepared to fight as long as necessary."




U.S. dockworkers at 14 ports stretching from Maine to Texas handling more than 68% of the country's imports started to strike, hurting most shipments at East and Gulf Coast ports and threatening to accelerate inflation through potentially snarled supply chains.

Members of the International Longshoremen's Association (ILA) walked out after the midnight expiration of their contract with the United States Maritime Alliance, which represents large shipping lines.

ILA President Harold Daggett said in a statement on the union's Facebook site that it is "prepared to fight as long as necessary, to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve."

ILA Seeks Higher Pay, Labor Protections Against Automation

The ILA, whose strike is its first in almost 50 years, is seeking higher pay and labor protections against the use of automation at the ports. The union said it has more than 85,000 members, although its annual report to the Labor Department showed just over 47,000 active members at the end of 2023.

The United States Maritime Alliance didn't immediately return an Investopedia request for comment.

Maersk Warns Strike May Hurt Supply Chains

In a statement Tuesday, European shipping giant A.P. Moller-Maersk said the strike will hurt supply chains. That could lead to "delays in cargo movement, increased costs, and logistical challenges for businesses relying on U.S. East Coast and Gulf ports," it said.

Maersk shares were down 5% in Danish trading Tuesday.

Read the original article on Investopedia.

Recommended Stories