American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Latest News

East Coast port strike halts shipping, threatens US economy

by admin October 1, 2024
October 1, 2024
East Coast port strike halts shipping, threatens US economy

Dockworkers on the East Coast and Gulf of Mexico launched a massive strike on Tuesday, freezing port operations and causing significant economic disruptions.

The strike comes just five weeks before a national election and threatens to have a profound impact on the US economy, with the potential to cost hundreds of millions of dollars each day.

Ports handling over half of the country’s container cargo are now at a standstill, with ships idling offshore and shipping containers piling up at key terminals.

Economists predict escalating economic damage the longer the strike continues, and industries nationwide are bracing for widespread supply chain disruptions.

Breakdown in negotiations

The strike stems from unresolved contract negotiations between the International Longshoremen’s Association (ILA), representing 47,000 dockworkers, and the US Maritime Alliance (USMX), which represents port operators and shipping companies.

Despite a last-minute offer of 50% wage increases from USMX, talks stalled as the union rejected the proposal, accusing shipping companies of hoarding profits while offering unacceptable wage packages.

The union stated:

The Ocean Carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA Longshore Workers an unacceptable wage package that we reject.

Efforts to resolve the dispute have yet to yield results, despite the White House confirming it has been working tirelessly over the weekend to avert the strike.

Economic ripple effects

The strike is the first by the ILA since 1977, and it arrives amid a wave of union activity across various sectors, including autoworkers and Hollywood.

While the immediate economic impact may be moderate, experts warn that if the strike drags on, it could cause widespread shortages and significant price increases.

Ports in New York, Baltimore, Savannah, and Houston are among those most affected.

With major shipping hubs closed, industries reliant on just-in-time deliveries, like auto manufacturing, could face crippling delays.

Perishable goods like food are also at risk, as 75% of the nation’s banana imports pass through these ports.

Calls for intervention grow

Business groups and Republicans in Congress are pressuring President Biden to use emergency powers under the 1947 Taft-Hartley Act to end the strike, but Biden has dismissed the idea.

“It’s collective bargaining. I don’t believe in Taft-Hartley,” he said.

Analysts predict the White House will eventually need to intervene, especially if the economic toll mounts and shortages hit consumers, according to a report in Washington Post.

The Conference Board estimates that a week-long strike could cause $3.78 billion in losses.

With negotiations deadlocked, concerns over potential shortages and price hikes are growing, as the clock ticks toward a resolution.

The post East Coast port strike halts shipping, threatens US economy appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
India’s factory growth slows to eight-month low in September, PMI data reveals
next post
European shares see a rough start to the week: Stellantis drops 14%, Rightmove falls 8.7%

Related Posts

Landslide at landfill in Uganda’s capital kills 17...

August 12, 2024

Greenland has lost ice 36 times the size...

February 14, 2024

The conman, his lovers and the mother who...

March 3, 2024

Germany to phase out power payments, saving consumers...

April 23, 2025

Firefighter and ex-forestry official arrested over Chile wildfire...

May 27, 2024

Trump declares ‘I hate Taylor Swift’ as singer’s...

September 16, 2024

Biden’s controversial ‘cannibalism’ remarks meet pushback in Papua...

April 25, 2024

What Donald Trump’s presidency means for DJT’s future:...

December 30, 2024

Foreign citizens urged to leave Lebanon ‘as soon...

August 4, 2024

China’s Xi Jinping calls for peace conference and...

May 31, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025
    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025

    Categories

    • Business (3,189)
    • Investing (2,528)
    • Latest News (2,000)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved