National Association of Wholesaler-Distributors CEO Eric Hoplin discusses possible port strikes with Mornings and Maria.
An impending strike of about 45,000 people port workers on the East and Gulf coasts may begin next week and disrupt the shipment of various products as the presidential election approaches.
Half of the ocean shipments to the US are sent through 36 ports that could be affected by the strike that could begin on Oct. 1. It would be the first strike of International Longshoremen’s Association (ILA)representing the port workers, since 1977.
The union and the US Maritime Alliance (USMX), which represents port employers, are at odds over wages in the new contract. As of Sunday, negotiations between the ILA and USMX appeared to be at a standstill, with each issuing statements about the irregularities.
The Port of Charleston is among the five busiest ports in the negotiating team. (Photographer: Sam Wolfe/Bloomberg via Getty Images/Getty Images)
If the strike takes place next week, it will disrupt billions of dollars worth of imports from cars and auto parts to agriculture and consumer goods. The potential work stoppage comes as the US election season heats up and Americans begin planning shopping for the upcoming holiday season.
US GROCERY STORES HAVE BEEN OUT OF POPULAR FRUITS IN WEEKS AS 45,000 FIRE DOCKERS THREATENED ON STRIKE.
The ports that will be affected by the strike handled $37.8 billion in auto imports in the 12 months to the end of June 2024, according to S&P Global Market Intelligence.
I Port of Baltimore leads the nation in the transportation of automobiles, and auto parts are also the most purchased on the East Coast and Gulf of Mexico. Those openings also lead the US in exports of machinery, fabricated metal and precision metals, according to data from S&P Global Market Intelligence.
Agricultural products are also an important import, accounting for a third of the US imported bananas they come from countries like Guatemala and Ecuador, Jason Miller, interim chair of the supply chain department at Michigan State University, told Reuters.
Agricultural products are also an important import, as three-quarters of US banana imports come from countries such as Guatemala and Ecuador. (Fabian Sommer / photo alliance via Getty Images / Getty Images)
BIDEN WILL NOT PREVENT POTENTIAL STRIKES ON EAST AND GULF COAST
The Port of New Orleans is a major hub on the Gulf Coast. (Photographer: Luke Sharrett/Bloomberg via Getty Images/Getty Images)
It would also impact the US $18.5 billion beef and pork industry and the $5.8 billion poultry and egg export sector shipped in frozen containers.
Ranchers and farmers have started to drive away their cattle due to drought and high costs in the region, threatening to increase the price of beef in the country. (Photo by Brandon Bell/Getty Images/Getty Images)
About 45% of all US pork exports and 30% of beef exports went through East Coast and Gulf Coast ports in the first seven months of this year, said US Meat Export Federation spokesman Joe Schuele.
In the pharmaceutical industry, over 91% of US imports are containerized and 69% of US exports are containerized. pharmaceutical products are handled by affected ports, according to Everstream Analytics. More than 1-in-3 containers shipped from the US contain life-saving medicines from the port of Norfolk in Virginia, while nearly 30% of containerized products arrive in the US at the Port of Charleston in South Carolina, the company noted.
US ECONOMIC COST OF EAST COAST AND GULF STACK COULD BE BILLIONS A DAY, TRADE EXPERT WARNS
The Port of Miami will also be affected by a possible ILA strike. (Photo by Joe Raedle/Getty Images / Getty Images)
The ports that will be affected by the strike bring in more than half of the woven and non-woven goods Clothes are imported to the US, worth $32.8 billion combined, and furniture worth $23.4 billion, according to S&P Global Market Intelligence.
The White House signed off on that earlier President Biden it will not use the Taft-Hartley Act to impose a cooling-off period during which workers will return to work for 80 days while negotiations continue.
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“Since he took over, he The Biden-Harris administration has established a comprehensive government approach to monitor and mitigate potential supply chain impacts, from severe weather to transportation service disruptions to the collapse of the Main Bridge in Baltimore,” White House spokeswoman Robyn Patterson told FOX Business.
“As part of this approach, we are monitoring and evaluating possible ways to address the impact on US supply chains related to operations at our ports, if necessary. That said, we continue to encourage the parties to continue to negotiate an agreement that benefits all parties and prevents any disruption,” Patterson added. .
FOX Business’ Edward Lawrence and Reuters contributed to this report.
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