The International Longshoremen's Association (ILA) and U.S. Maritime Alliance (USMX) agreed in October to extend their existing contract through mid-January while they continue to negotiate a long-term agreement. This means the ILA could call another strike in January if they fail to reach a new deal, John Drake, the U.S. Chamber of Commerce's VP of Transportation, Infrastructure, and Supply Chain Policy, wrote in the chamber's blog.

The East and Gulf Coast ports handle more than half of U.S. imports, so a second strike could have devastating economic impacts, Drake said. Consumers could face shortages and price hikes on essential goods like groceries, clothing, and electronics, affecting workers and families nationwide. 

Major supply chains could be crippled, devastating the economy. Economists estimate a similar disruption in 2002 cost $1 billion per day, taking six months for the economy to recover. JPMorgan Chase calculated that an ILA strike today would cost $3.8 billion to $4.5 billion per day.

Furthermore, a high-level analysis of economic impacts by MITRE Corporation found that an ILA strike lasting 30 days would have an economic impact of:

$640 million per day at the New York/New Jersey ports.
$600 million per day at Virginia ports.
$51 million per day in exports at Houston ports.
$41.5 million per day in imports at Houston ports.

According to Drake, small businesses would bear the brunt, as they already operate with tighter margins, a constrained labor market, and higher inflation costs.

Additionally, efficient ports are critical for America's global economic competitiveness, but strikes and outdated technology pose serious risks, the executive added.

U.S. ports rank among the least productive in the world, lacking the infrastructure and technology investments made by other nations. The ILA has resisted modernization efforts, citing job loss concerns, Drake explained, even though the expired contract allowed for semi-automation without reducing jobs or hours.

Union leaders are deploying extreme tactics, with ILA President Harold Daggett vowing to "cripple" the economy through a prolonged strike to achieve the union's goals, regardless of the impact on small businesses, workers, and families.

"This reckless gamble with America's economic future must be avoided through good-faith negotiations that balance worker protections with necessary technological progress," Drake said.

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