Potential strike by dockworkers on the East and Gulf Coasts of the United States is looming

A potential strike by dockworkers on the East and Gulf Coasts of the United States is looming, with thousands of workers set to walk out if a new contract is not reached by October 1. Here are key points to consider:
Affected Ports: 14 major ports from Boston to Houston, including Baltimore, New York/New Jersey, Philadelphia, Norfolk, Wilmington, Charleston, Savannah, Jacksonville, Miami, Tampa, Mobile, New Orleans, and Houston.
Number of Workers: Approximately 25,000 dockworkers, representing the International Longshoremen’s Association (ILA), are involved in the dispute.

Impact: A strike could:
Disrupt the flow of goods, including agricultural products, pharmaceuticals, heavy machinery, clothes, shoes, and toys.
Reduce U.S. economic activity by between $4.5 billion and $7.5 billion per week, according to Oxford Economics.
Take up to a month to clear the backlog of shipments that pile up while ports remain shut.
Fuel inflation and cause layoffs at manufacturers if raw materials dry up.

Expert Insights:
Retailers may divert shipments to the West Coast, where dockworkers have already reached a new contract agreement.
A prolonged strike could moderately increase prices for certain goods, with food products particularly vulnerable due to perishability.
Some 75% of the nation’s imported bananas come through East and Gulf Coast ports, threatening the supply of this highly perishable product.
Government Response: The Biden administration has encouraged all parties to keep negotiating and has made clear that President Biden is not considering invoking the Taft-Hartley Act, which would impose an 80-day cooling-off period.