(TheRedAlertNews.com) – America faces a looming disaster as East and Gulf Coast port workers threaten a massive strike, set to begin on October 1. This strike threatens to cripple the U.S. supply chain, inflame inflation, and disrupt holiday shopping.
The potential strike involves 45,000 workers from the International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX). Their current contract expires on September 30, and with contentious negotiations still ongoing, businesses across the country are bracing for impact.
Over 40% of all containerized goods entering the U.S. arrive through East and Gulf Coast ports. This strike could cause severe supply chain disruptions extending well into 2025.
According to Peter Sand, Chief Analyst at Xeneta, “To stop trade entering the US on such a large-scale, even for short period of time, is highly-damaging to the economy.” The consequences of this strike will reverberate through congestion at U.S. ports and delays in schedules, leading to lasting economic disruptions.
“More than 40% of total containerized goods enter the US through ports on the East Coast and Gulf Coast, so the stakes could not be higher.”
Ships already en route with billions of dollars of cargo have limited options. “There are ships on the ocean right now carrying billions of dollars of cargo heading to ports on the US East and Gulf Coast,” said one analyst. “These ships cannot turn back and they cannot realistically re-route to the US West Coast.”
The potential strike could also exacerbate the already strained supply chains impacted by the ongoing conflict in the Red Sea, drought in the Panama Canal, and the Baltimore bridge collapse. Average spot freight rates from the Far East to the US East Coast have already spiked more than 300% between December 2023 and July 2024.
With the White House reluctant to invoke the Taft-Hartley Act to prevent the strike, the situation grows more concerning. Businesses have called for immediate intervention and for negotiations to resume. Ryan Peterson, CEO of Flexport, warned that a prolonged strike could lead to serious capacity shortages and depression-level shortages across the U.S. economy.
If a resolution is not reached, the impact on the upcoming holiday shopping season will be devastating. Backlogs and shortages will only worsen, further impacting American consumers already dealing with high inflation. Judah Levine of Freightos has warned of escalating congestion and delays on the West Coast and at origin ports in Europe and Asia.
This potential strike and the timeless principles of economic stability and national security that our ports represent must remain protected. The stakes are high, and it’s time for our leaders to step up and ensure American prosperity.
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