Port strike: Longshoremen hit picket lines along East, Gulf coast; Here's what they want

Dockworkers have taken to the picket lines in a historic strike, shutting down the East and Gulf coast ports from Maine to Texas.

The supply chain disruption and economic impacts could be catastrophic with each passing day that the 36 ports are shut down — as much as $5 billion a day as imports and exports are blocked.

The International Longshoremen's Association (ILA) with approximately 45,000 workers went on strike Oct. 1, as contract negotiations with the shipping industry's group US Maritime Alliance (USMX) had come to an impasse over wages and automation.

"USMX brought on this strike when they decided to hold firm to foreign owned ocean carriers earning billion dollar profits at United States ports, but not compensate the American ILA longshore workers who perform the labor that brings them their wealth,” ILA President Harold Daggett said in a statement released early Tuesday.

Negotiations have been stalled for months as workers demanded better pay and oppose artificial intelligence and automation taking over their jobs.

“Every idle day that a ship does not get into the port costs money and sometimes a lot of money…that ultimately gets passed onto consumers,” said Stamatis Tsantanis, chairman and chief executive of shipper Seanergy Maritime and United Maritime, in a statement.

But the impact isn't as clear cut as money, the length of time the ports are shut down will also cost a recovery period to get things back up and running.

Jonathan Gold, vice president of supply chain and customs policy at the Nation Retail Federation estimates that for each day of the strike, it takes about 3-5 days to clear the backlog and “the longer it goes, the more it gets compounded,” he said.

Retailers, such as Costco, having been shipping months in advance, expediting holiday goods orders ahead of the possible port strike, signaled by a surge in container imports and freight rates in July and August according to news reports.

The East and Gulf Coast ports handle about half of all goods shipped in containers, in and out of the U.S. involving major ports, Baltimore; Boston; Charleston, South Carolina; Jacksonville, Florida; Miami; Houston; Mobile, Alabama; New Orleans; New York/New Jersey; Norfolk, Virginia; Philadelphia; Savannah, Georgia; Tampa, Florida; and Wilmington, Delaware.

The economic activity in ports impacts many different types of businesses, such as warehousing and transport which could see a fallout from work stoppages and put more than 100,000 employees out of work, according to news reports.

The port strike's far reaching impacts to businesses, consumers will even extend to your kitchen table.

Consumers would first notice shortages of perishable products, as grocery aisles could be bare of popular fruits like bananas within weeks, given that about two-thirds of bananas in the U.S. arrive in East Coast ports.

Here's what you need to know.

What is at the heart of the labor dispute?

Union workers at ports in the East and Gulf coasts earn a base wage of $39 an hour after six years on the job compared to reports that West Coast union workers, which make $54.85 an hour.

The International Longshoremen's Association is demanding a 77% pay raise increase over six years and more restrictions and bans on the automation of cranes, gates and container movements used in loading or unloading of cargo.

According to news sources, USMX responded with an offer of 40% in wage increases, but the union rejected it, calling the counter “a joke.”

There hasn’t been an ILA strike against these ports since 1977.

What products would be impacted by a port strike?

A port strike will impact vehicle imports, auto parts, machinery, fabricated steel, precision instruments, computers, electronic parts and alcohol - 80% of imported beer, wine, whiskey and scotch and 60% of rum arrive at East and Gulf coast ports.

The Port of Baltimore, Maryland leads the nation in car shipments. The Philadelphia port leads in fruits and vegetables, New Orleans port brings in coffee and wood products such as plywood.

Agricultural impacts such as the imports of bananas and fruits, coffee and cocoa or exports of soybeans and soybean meal would be felt. However, even more significant impacts would be felt on the chilled or frozen meat products, seafood and eggs, which require refrigerated containers that cannot sit for very long.

The Port of Wilmington in Delaware is the leading port for Dole Fresh Fruit Co. and Chiquita Fresh North America, getting about two-thirds of all banana imports in the U.S.

“Any fruit that arrives after 1 October will be condemned to the trash can,” Peter Kopke Sr. of Port Washington-based importer Kopke Fruit told The Orange County Register. “And all of the people who have invested in that business will lose a fortune.”

Knitted and non-knitted apparel, furniture, plywood and pharmaceutical products and year-end holiday items would be among the endless list of products impacted by the strike.

This article originally appeared on NorthJersey.com: Longshoremen on strike, shutting down East, Gulf Ports: What it means