RILA: Port strike could cost the economy over $4 billion a day
A port strike by dockworkers at 36 U.S. ports seems all but certain (at least as of late afternoon Monday.)
The International Longshoreman’s Association (ILA) has expressed its intent to strike Tuesday at 12:01 a.m. EDT after failing to reach an agreement on a new labor contract covering workers at U.S. East and Gulf Coast ports. On Monday, Jim McNamara, spokesman for the I.L.A., said in a statement that the Maritime Alliance had refused the union’s demands “for a fair and decent contract.”
The strike would cost the U.S. economy billions a day. The ports are estimated to handle almost half of the goods shipped into and out of the U.S.
“Even though leading retailers have prepared for disruptions, the U.S. economy is likely to see immediate impacts from even a short-lived strike," stated Brian Dodge, president, Retail Industry Leaders Association. "Latest estimates suggest a strike could cost the economy over $4 billion a day. We’ve weathered challenging economic storms over the last several years, most of which were unexpected and out of our control. In this case, the two parties had years of preparation to find an agreement, making the impending strike and its economic harm entirely foreseeable and avoidable."
Dodge noted that retailers have already activated contingency plans, including rerouting shipments, to ensure consumer goods reach their final destination with limited disruption or extra costs.
"Shoppers can rest assured holiday merchandise will be on shelves; however, the longer this work stoppage goes on, the harder it will become to shield customers from its effects," he said.
No negotiations were underway and none were planned before the Monday deadline, according to a Reuters report.
“RILA urges ILA and USMX to return to the negotiating table and remain there until a deal is reached which ensures these vital supply chain gateways are fully operational to serve the American public. However, given the ILA’s current posture, we implore the Biden-Harris administration to stay engaged and consider all options to keep the U.S. economy open for business.”
