It has been three days since the International Longshoremen's Association (ILA) went on strike, after failing to reach an agreement with the country's Maritime Alliance (USMX) for wage readjustment and the automation and semi-automation of activities.

This is the first ILA strike since 1977 and it affects port terminals from Maine to Texas. The situation has retailers, consumers, importers, and exporters on alert, given the uncertainty of the extension of the strike and the possible shortage of products in the U.S. market.

Early on Tuesday, the United States Department of Agriculture (USDA) issued a statement saying it is taking all measures to monitor and address possible repercussions for consumers.

According to local media, several supermarkets had strategies in place before the shutdown deadline to secure supply, especially as key holiday dates approach.

“Our analysis shows that we should not expect significant changes in food prices or availability in the near term,” said the USDA, adding that ”thanks to the smooth movement of goods through the ports and our strong domestic agricultural production, we do not expect shortages in the near future for most commodities.”

Experts have indicated that, if prolonged, the strike could have significant costs for the U.S. economy, with daily losses of millions of dollars.

ILA President Harold J. Daggett has called on all members to stand strong and united, and that the demand for a wage increase remains firm. 

“In addition, we want absolutely airtight language that there will be no automation or semi-automation, and we demand that all container royalty money go to the ILA,” he said.

The ILA issued a statement saying they intend for the protests to continue 24/7 for as long as it takes the USMX to meet members' demands. 

The Association wants a $5 per hour wage increase for each of the six years of the next contract, or a 77% increase overall. USMX said Monday it had increased its offer to more than 50% during the proposed contract, but the longshoremen did not accept it.

U.S. National Retail Federation president and CEO, Matthew Shay, urged President Biden to use all available authority and tools - including the use of the Taft-Hartley Act - to immediately restore operations at all affected container ports, get the parties back to the bargaining table and ensure that no further disruptions occur.

U.S. government response

In the initial hours of the strike, both President Biden and the Secretary of Transportation issued statements. President Biden indicated that collective bargaining is the best way for workers to get the pay and benefits they deserve. 

“I have urged the USMX, which represents a group of foreign-owned carriers, to come to the table and present a fair offer to the International Longshoremen's Association workers that ensures they are paid adequately commensurate with their invaluable contributions.” 

“Ocean carriers have made record profits since the pandemic and, in some cases, profits have grown by over 800% compared to their pre-pandemic profits. Executive compensation has grown in line with those profits and profits have been returned to shareholders at a record pace. It is only fair that workers, who took risks during the pandemic to keep the ports open, also see a significant increase in their wages.”

“As our nation recovers from the aftermath of Hurricane Helene, port workers will play a critical role in getting the resources they need to communities. Now is not the time for ocean carriers to refuse to negotiate a fair wage for these essential workers while making record profits. My Administration will monitor any price manipulation activity that benefits foreign ocean carriers, including those on the USMX board of directors.”

“The time has come for USMX to negotiate a fair contract with the longshoremen that reflects the significant contribution they have made to the global economy,” Biden said.

Transportation Secretary Pete Buttigieg called on ocean carriers to eliminate surcharges. “President Biden and Vice President Harris are closely monitoring any attempts by companies to opportunistically raise prices, including shipping lines or others, during the labor dispute at East Coast and Gulf Coast ports,” he said. 

“Our administration is asking the shipping lines to withdraw their surcharges. No one should take advantage of a disruption for profit, especially at a time when entire regions of the country are recovering from Hurricane Helene.” 

“The Federal Maritime Commission (FMC) has stated that it will use the authority the President requested and signed into law to ensure that the rates being charged are legitimate and lawful. President Biden has directed our administration to use all authorities at the federal level and to support state and local officials in using the authorities at their disposal. We are closely monitoring potential supply chain impacts and assessing ways to address them, if necessary,” Buttigieg detailed.

*This is a developing story

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