The economy could see another blow, which will be a doozy right before the presidential election.
The International Longshoremen’s Association and the United States Maritime Alliance have until September 30 to reach a deal before a massive port strike ensues. The dispute centers on substantial wage hikes and guarantees that automated systems will not replace employees.
Longshore workers handle the loading and unloading of cargo at ports, which involves operating cranes and keeping equipment in standard operating condition. Thirty-six ports, stretching across key centers from Maine to Texas, are at risk of ceasing to receive container shipments if a strike commences.
“Early Tuesday morning, as early as 12:01 am – unless there is a contract settlement – the largest port strike in nearly 50 years, will disrupt our supply chain – affecting just about everything we consume on a daily basis,” stated Jose A. Herrea, transportation specialist.
“45,000 dockworkers on the East Coast and Gulf Coast are ready to go on strike on October 1st. This would result in approximately 50% of U.S. port capacity being unavailable,” added Meagan Martin-Schoenberger, Senior Economist at KPMG Economics.
Even a short work stoppage would disrupt shipping and supply chains, causing delays and costing the U.S. economy up to $1 billion per day, reported The Washington Post.
“A strike like this where half the country is closed down, American consumers will pay,” said Margaret Kidd, program director of supply chain and logistics technology at the University of Houston. “If it goes on for a long period of time, folks will be unemployed. This is not one sector. This is the U.S. economy.”
Retailers would initially feel the impact, and depending on how long the strike lasts, consumers might start noticing the effects, reported Fox 32.
Americans may experience shortages of chocolate, alcohol, popular fruits such as bananas and cherries, and even specific car models, as well as increased prices, per CNN.
Biden administration officials met on Friday with port operators to encourage an alliance between them and the union, reported The Associated Press. However, any cautious optimism that a strike will be avoided is diminishing.
If an extended strike caused a shortage of consumer goods or a rise in fuel prices, it could potentially continue to erode support for Harris and impact the results of the November election, per AP.
As a reminder, you have until Monday, October 7, to register to vote for the November 5 presidential election.
