While consumers may not feel immediate effects unless the strike extends for several weeks, businesses and logistics companies have proactively prepared to mitigate the disruption. Nevertheless, analysts and industry groups caution that a prolonged work stoppage could result in economic losses ranging from hundreds of millions to as much as $4.5 billion each day. These ports are responsible for handling roughly half of the country’s ocean imports, with projections suggesting that between 25,000 and 50,000 members of the International Longshoremen’s Association (ILA) could participate in the strike, out of a total membership of 85,000.

Union representatives contend that large global cargo companies have profited from supply-chain disruptions during the pandemic, which led to increased freight rates, arguing that workers have not adequately shared in these profits. A strike would mark the culmination of intense discussions between the union and the United States Maritime Alliance (USMX), which represents major shipping and port companies. The union is advocating for wage increases and restrictions on automation at ports, which they believe could threaten jobs. In the lead-up to the possible work stoppage, negotiations between the two parties have stalled.

1Truck America reached out to the Port Authority of New York and New Jersey, receiving a statement that said, “Thank you for your interest. We will not be able to accommodate any media interviews for the next 48 hours.” Meanwhile, the USMX and ILA have been exchanging counter-offers concerning wages. The USMX has raised its proposal and requested an extension of the current Master Contract, as both sides have shifted their prior positions. They express hope that this could facilitate a full resumption of collective bargaining on other unresolved matters. The proposed wage increase from the USMX would be nearly 50%, along with a tripling of employer contributions to retirement plans, enhanced healthcare options, and the continuation of existing automation policies.

Many industries have already stocked up on supplies, anticipating the strike that could commence on October 1. Analysts predict that the repercussions would be more severe if the strike extends for weeks or longer. Trucking and logistics companies are working diligently to clear as much inventory as possible from ports prior to the potential work stoppage.

Business organizations have urged President Joe Biden to step in under the 1947 Taft-Hartley Act. This legislation would allow the president to request an 80-day “cooling-off period,” compelling dockworkers to remain on the job. However, while the White House has been in contact with both the ILA and USMX recently, the president does not intend to invoke this law.