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jiemian news reporter | cai xingzhuo

interface news editor | liu haichuan

in the early morning of tuesday (october 1, 2024) local time, thousands of dock workers from new england to texas went on strike. this is the first shutdown at u.s. east coast and gulf coast ports since 1977.

according to cbs local time on october 1, before the strike, labor negotiations between the international longshoremen's association (ila) and the united states maritime union (usmx) reached a deadlock. usmx represents major shipping lines (all foreign-owned), terminal operators and port authorities. usmx said the strike is expected to involve 25,000 workers and lead to the closure of 14 ports including baltimore, boston, miami, and houston. however, cnn’s report, the strike could involve nearly 50,000 members of the ila. michael pearce of oxford economics said tens of thousands of workers servicing the ports could face furloughs or reduced hours in the early days of the strike, with the total number of workers affected being around 100,000. 2 times the number of people.

the ila's main demands are for significant wage increases and a complete ban on the use of automatic cranes, automatic doors and container trucks for loading and unloading goods. according to the american broadcasting corporation (abc), there is still a big gap between usmx’s contract offer and ila’s requirements.

specifically, usmx said it has increased pay increases to 50% over six years and pledged to retain restrictions on automation in the old contract. usmx also said its proposal triples employer retirement plan contributions and enhances health care options. in a statement earlier on tuesday, the ila said it rejected usmx's latest proposal because it "falls far short of the demands of ordinary ila members in terms of wages and protection against automation." the two sides have not held formal negotiations since june.

on october 1, 2024 local time, dock workers shouted at the entrance of the bay terminal in houston, usa. (image source: visual china)

what impact will the strike have on the economy? the transport and warehousing industry will be the first to feel the impact, and if the strike continues, it is expected to have an impact on the wider economy, the report said. according to reports, if the strike continues, companies will be forced to pay delay fees to shippers, causing some goods to arrive late during the holiday shopping season. among the most immediate hits are dozens of goods including bananas and european liquor, as well as non-perishable products like auto parts and furniture, and raw materials like cotton and lumber, which are shipped through the east coast and gulf coast imported from the port. many shipments cannot be rerouted because it "does not make economic or logistical sense" to transport them by plane or other ports of entry, the report said.

analyst at oxford economics, the strike could cost the u.s. economy $4.5 billion to $7.5 billion per week, or a loss of 0.1% of annual u.s. gdp. there are also reports that since the strike has disrupted many import and export trades in the united states, this may become the most destructive strike in the united states in decades.

however, since the damage to the economy caused by a strike is closely related to its duration, some people believe that a short-term strike will not cause too much damage to the economy. jason miller, a professor at michigan state university, said a two- or three-day strike would not be too disruptive even for the most import-reliant industries. for example, ports often have to temporarily close due to extreme weather events such as hurricanes, and serious damage rarely ensues.

cbs reports that so far, us president biden has refused to intervene directly, citing the need to respect collective bargaining rights. but if the strike continues, business groups are likely to call for action. the white house said in a statement on tuesday that president joe biden and vice president harris are "closely monitoring potential impacts to supply chains and, if necessary, evaluating ways to address potential impacts." separately, the u.s. department of transportation said in a statement on tuesday that it has been engaging with shippers, ocean carriers, ports, railroads and other supply chain partners for months to prepare for possible strikes and to try to mitigate them. bottlenecks in the supply chain.