A MASSIVE port strike affecting the East and Gulf Coasts could bring Christmas misery to millions of Americans this year.
The head of the trade union representing dock workers has warned that the “world will collapse” if the strike goes on for another two months.
The biggest US dock strike in 50 years is bringing supply chain chaos[/caption]
Longshoremen are striking for increased pay and against automation[/caption]
Fears are growing that the strike could cause price rises and shortages[/caption]
Nearly 50,000 members of the International Longshoremen’s Association (ILA) went on strike on October 1 after rejecting a contract offer from the United States Maritime Alliance (USMX), which represents major shipping lines, port authorities, and terminal operators.
Fears are growing that the biggest dockworker strike in nearly 50 years could trigger chaos this year as more than 45 huge container ships remain unable to dock.
Shoppers have begun panic buying items including toilet paper, with warnings that Halloween and Christmas supplies such as gifts and perishable items like food and alcohol could remain in limbo for weeks.
Long lines of container ships have been pictured outside of some 40 major US ports from Maine to Texas, with supply chains of everything from car parts to bananas in jeopardy.
Port employees want a $5-an-hour pay increase for each of the six years of the next contract – a raise of 77% in total.
Longshoremen have also slammed the increased automation of their jobs, with cranes and driverless trucks taking over much of their backbreaking labor.
ILA President Harold Daggett was unapologetic for the chaos that comes just over a month before Americans go to the polls in November’s presidential election.
“If we have to be out here a month or two months, this world will collapse,” he told CNN in an interview Tuesday morning.
If walkouts continue for more than a few weeks, millions of Americans could be hit by higher prices and delays for household goods ahead of the busy holiday season.
JP Morgan has estimated that the strike could cost the US economy up to $4.5 billion a day.
This week, an expert warned that consumers should expert immediate shortages of perishable goods, with higher prices as a result.
Johns Hopkins Business School global supply chain expert Tinglong Dai exclusively told The U.S. Sun that even just a week-long strike will result in “empty shelves of fresh products like perishables and flowers.”
Nearly 300 trade associations have urged President Joe Biden to use federal authority to end the strikes.
But the administration has repeatedly said it will not force unions to go back to work by invoking the Taft-Hartley Act.
Even if the strike is resolved, the backlog to American supply chains could take weeks to resolve.
One solution put forward is for container ships to use West Coast ports unaffected by the strikes, going via the Panama Canal.
But this option would add thousands of miles onto journeys, take weeks to complete, and hike up costs.
ILA President Daggett has come under criticism from some for his lavish lifestyle.
The New York City-born dad-of-three earns $900,000 a year and reportedly owns a 76-foot yacht called the Obsession.
He also drives a Bentley and lives in a $1.7 million home in Sparta, New Jersey.
The USMX on Monday gave the union an increased pay offer of more than 50% over the next six years or a yearly raise of $3 an hour.
Experts have warned that items most at risk include bananas, as the US imports almost 100% of its supply.
More than half of American banana imports come through ports currently affected by the strike, according to the American Farm Bureau Federation.
Other items most at risk include cherries, cocoa, sugar, imported wine, beer, and hard liquor.
The USMX has said it is still open to negotiations.
“Reaching an agreement will require negotiating,” it said in a statement late on Wednesday.
“We cannot agree to preconditions to return to bargaining, but we remain committed to bargaining in good faith to address the ILA’s demands and USMX’s concerns.”
The strike is being seen as an “October Surprise” ahead of the election – a sudden twist which could shape the final weeks of the campaign.
President Biden told reporters on Sunday that he wouldn’t intervene in the strike.
“It’s collective bargaining, and I don’t believe in Taft-Hartley,” he said.
Donald Trump put out a statement Tuesday blaming the strike on “the inflation brought on by Kamala Harris’ two votes for massive, out-of-control spending.”
On Wednesday, Vice President Harris, the Democratic presidential nominee, said in a statement the striking workers “play a vital role transporting essential goods across America,” and “deserve a fair share of these record profits.”
