White House officials are urging dockworkers and port operators to return to the bargaining table to avoid a strike at shipping terminals along the East and Gulf Coasts. The International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) have been in stalled negotiations since June, with the dockworkers preparing to walk off their jobs when their contract expires on September 30. White House spokesperson Robyn Patterson stated that senior officials are in contact with the parties, emphasizing the need to negotiate in good faith and resolve the dispute quickly.
Negotiations between the ILA and USMX have taken on added urgency as a strike could disrupt the supply of food, auto parts, and other products, potentially driving up costs for consumers. The cargo gateways along the East and Gulf Coasts handle about half of all goods shipped in containers in and out of the U.S. Analysts predict that a strike could reduce U.S. economic activity by $4.5 billion to $7.5 billion per week, with it taking up to a month to clear the backlog of shipments while ports are shut. However, the overall impact on the U.S. economy is expected to be modest, with economists noting that any slowdown would likely be reversed once the ports reopen.
White House officials are confident in the resilience of the nation’s economy and supply chain, attributing this to the establishment of a task force by the Biden administration in 2021 to address supply-chain challenges. The administration has been meeting with various industries, such as retailers, grocers, manufacturers, agriculture exporters, shippers, and ocean carriers, to assess the potential impact of a strike on their businesses and develop response plans. Despite the option for President Biden to delay a strike with a court order under the Taft-Hartley Act, the White House has stated that it is not considering this move and supports the collective bargaining process.
The possibility of a strike at shipping terminals represents a significant threat to the U.S. supply chain, as it could disrupt the flow of essential goods and drive up costs for consumers. While the economic impact of a strike is estimated to be relatively small in the grand scheme of the U.S. economy, the Biden administration is taking proactive measures to mitigate any potential fallout. By engaging with industry stakeholders and emphasizing the importance of negotiations between the ILA and USMX, the White House is working to avert a major disruption in the shipping industry that could have far-reaching consequences for businesses and consumers alike.
