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as u.s. policymakers shift their focus from curbing inflation to stimulating the job market, a crisis that could deal a major blow to the economy is quietly approaching, fearing a reappearance of supply chain disruptions and consumer dissatisfaction during the epidemic.

according to bloomberg, as the talks reached an impasse, about 45,000 dock workers at major ports in the east and the gulf of mexico threatened to strike on october 1. the strike action on the eve of the election added more uncertainty to the election.

since june, negotiations between labor and management have failed to make a breakthrough, and industry officials now generally believe that a strike is inevitable. to this end, ocean shipping companies and port operators have urgently notified their customers and started to develop contingency plans to deal with the impact of possible strikes.

the produce section of a flagship target store in edina, minnesota, september 5, 2024.

ports are important gateways for the united states' foreign trade, with more than half of import and export containerized goods being processed through these key trade ports. it is estimated that if the strike lasts for a week, it could cause up to $7.5 billion in losses to the u.s. economy. this will not only affect millions of boxes of bananas, plywood, auto parts and other special goods, but will also affect the entire supply chain system.

if a strike does occur, the transportation of consumer goods, factory parts and some vehicles would be stalled, disrupting the automotive supply chain and other manufacturing networks in election battleground states; refrigerated fruit imports and fresh meat exports would face spoilage and diversion, leading to supply shortages and price increases.

analysts warn that the chain reaction will spread around the world as port congestion reduces capacity and pushes up freight rates. the two sides are still far from reaching an agreement. the unions are demanding a nearly 80% wage increase over six years, arguing that workers should get a share of the profits made by foreign container shipping companies during the epidemic. on the other hand, companies are more willing to wait because they have ample funds and are reluctant to set a precedent.

“if a new master contract agreement is not in place, a sleeping giant will awaken on tuesday, october 1, 2024,” harold daggett, the vocal leader of the international longshoremen’s association, said in a sept. 17 statement.