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The East and Gulf Coast Strike Is Over (For Now)
Ports are reopened, sparing consumers potentially devastating produce shortages
Port staff and truckers scrambling to get products moved ahead of the strike.
Jennifer Lake/Sipa via AP Newsroom
Tens of thousands of dockworkers from Maine to Texas returned to work on Oct. 4, ending a days-long strike that threatened to halt deliveries of everything from bananas to sneakers in major ports along the East and Gulf coasts. The International Longshoremen’s Association, the union representing the dockworkers, and the U.S. Maritime Alliance, which represents ports and shipping companies, reached a tentative agreement on wages. The ILAA agreed to end the strike until Jan. 15, 2025 to give both parties time to reach a new contract.
The walkout was the first for the ILAA since 1977, and while it wasn’t expected to impact consumers at the onset given many businesses, retailers and logistic companies had been preparing for a looming strike by importing products earlier and shifting deliveries to the West Coast. If it had lasted for weeks it could have resulted in shortages, product delays and potentially higher prices right before the holidays. The Conference Board estimates the strike could have cost the U.S. economy $3.78 billion weekly, or $540 million per day.
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Ripple effects
More than half of goods would be impacted. The 36 ports on the East Coast and Gulf Coast handle 57 percent of the goods coming in and out of the U.S., including 75 percent of dairy products, eggs and honey; 70 percent of coffee, teas and spices; and 61 percent of essential oils, perfumes and cosmetics, according to Oxford Economics. Meanwhile, about 40 percent of U.S. footwear was imported through the East and Gulf coast ports last year and so far in 2024, 32 percent of footwear imported to the U.S. went through those ports, according to the American Apparel & Footwear Association. As for produce and food, 75 percent of the nation’s supply of bananas, nearly 90 percent of imported cherries, 85 percent of canned foodstuffs, 82 percent of hot peppers and 80 percent of chocolate are off-loaded from containers at these ports, according to the American Farm Bureau Federation. Other goods that could be impacted include wood, wine and spirits, toys and automobiles.
“If a strike does occur, that means operations at the covered ports stop. Neither imports nor exports will move, vessels will start to back up outside the ports, containers will sit and industries from retail to manufacturing to agriculture will be impacted,” Jonathan Gold, vice president of supply chain and customs policy at the National Retail Federation warned in a blog post earlier this month. “For retailers, that means holiday shipments might not arrive on time. Manufacturers might not receive parts, materials and supplies needed for production, which will lead to assembly lines shutting down. And farmers won’t be able to get their products to overseas markets, which could lead to lost sales.”
Americans living in Puerto Rico would be particularly impacted during the strike, since more than 85 percent of the island’s food supply comes from the U.S., with 90 percent of the shipments passing through these ports, according to the American Farm Bureau Federation.
Why are port workers striking?
The International Longshoremen’s Association wants higher pay and a ban on the automation of cranes, gates and trucks that load and unload containers. Counteroffers made by the U.S. Maritime Alliance, which represents the docks, wasn't enough to avert an initial strike. Under the 1947 Taft-Hartley Act, President Joe Biden could obtain a court order that would suspend the strike for 80 days, but the president told reporters over the weekend he didn’t plan to do that despite calls from businesses and the U.S. Chamber of Commerce for Biden to evoke it. In an open letter to President Biden, the Chamber of Commerce pointed to shipping delays caused by the pandemic and the toll it took on the economy, urging the White House to avoid a repeat.
What you can do
With the strike averted for now, consumers should expect a normal holiday shopping season. If you are considering doing your holiday shopping early, this month is still a good time to jump on it.
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