It Begins: US Port Strikes Erupt, First Shutdown In 50 Years Sparks Fears Of Supply Chain Crisis

It Begins: US Port Strikes Erupt, First Shutdown In 50 Years Sparks Fears Of Supply Chain Crisis

The Teamsters told Biden: “Stay the f**k out of this fight.”

mobile-logo

More than 45,000 International Longshoremen’s Association (ILA) members from over three dozen facilities across 14 Gulf and East Coast ports went on strike early Tuesday, marking the largest labor action at US ports in nearly 50 years. The labor action, driven by disputes over automation and wages in a new multi-year labor contract, threatens to disrupt supply chains nationwide. If the strike persists for more than a week, retailers could face shortages of certain goods (read: here), potentially sparking another wave of inflation.

ILA’s strike hit 36 ports across the Gulf and up and down the East Coast—this is the union’s first labor action since 1977. Workers walked off the job at the Port of Philadelphia a few short minutes after midnight when ILA and the US Maritime Alliance (USMX)—a coalition of port operators and carriers—failed to agree on a new labor contract offer that would have boosted wages by 50% over six years and pledged to place limitations on port automation. The union has demanded a 77% pay bump. 

On Tuesday, ILA said USMX’s latest offer was rejected because it “fell far short of what ILA rank-and-file members are demanding in wages and protections against automation.” Both sides have been locked in talks since June.

“We are prepared to fight as long as necessary, to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve,” union boss Harold Daggett said in a statement, quoted by AP News, adding, “They must now meet our demands for this strike to end.”

Supply chain management company Flexport founder and CEO Ryan Petersen noted on X that the Teamsters Union released a statement in solidarity with ILA, informing the Biden administration to “stay the f**k out of this fight”…

Ahead of the strike, a video posted on X, supposedly of ILA boss Daggett, warned: “I will cripple you, and you have no idea what that means. Nobody does,” referring to the power the union has over the US economy.

“This video is wild If this video is real, I think we need to give the longshoreman exactly what they want immediately… … then we need to execute on a plan to automate as much of the ports as possible so they can’t destroy civilization — as he’s threatening to do!,” All-In’ podcast host Jason Calacanis wrote on X while commenting on the video. 

Goldman analysts explained last week that a walkout by ILA members would jeopardize $5 billion in daily international trade coming into the Gulf and East Coast ports, while JPMorgan noted the hit could be between $3.8 billion and $4.5 billion a day.

On Monday morning, Goldman analysts led by Brooke Roach provided clients with an overview of the major retailers that would be impacted the most by a port shutdown. In particular, the analysts found that about half of Dollar Tree’s products had passed through these ports, indicating that a prolonged strike could spark shortages of certain goods on store shelves

Also on Monday, Suzanne Clark, CEO of the US Chamber of Commerce, wrote in a letter to the Biden administration: “It would be unconscionable to allow a contract dispute to inflict such a shock to our economy,” adding, “Taft-Hartley would provide time for both parties in negotiation to reach a deal on a new labor contract.”

(ORGINAL)

***********

Header feature image (edited) credit: Org ZH article content.  Emphasis added to article by (TLB)

••••

••••

Stay tuned tuned…

••••

The Liberty Beacon Project is now expanding at a near exponential rate, and for this we are grateful and excited! But we must also be practical. For 7 years we have not asked for any donations, and have built this project with our own funds as we grew. We are now experiencing ever increasing growing pains due to the large number of websites and projects we represent. So we have just installed donation buttons on our websites and ask that you consider this when you visit them. Nothing is too small. We thank you for all your support and your considerations … (TLB)

••••

Comment Policy: As a privately owned web site, we reserve the right to remove comments that contain spam, advertising, vulgarity, threats of violence, racism, or personal/abusive attacks on other users. This also applies to trolling, the use of more than one alias, or just intentional mischief. Enforcement of this policy is at the discretion of this websites administrators. Repeat offenders may be blocked or permanently banned without prior warning.

••••

Disclaimer: TLB websites contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of “fair use” in an effort to advance a better understanding of political, health, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than “fair use” you must request permission from the copyright owner.

••••

Disclaimer: The information and opinions shared are for informational purposes only including, but not limited to, text, graphics, images and other material are not intended as medical advice or instruction. Nothing mentioned is intended to be a substitute for professional medical advice, diagnosis or treatment.

Be the first to comment

Leave a Reply

Your email address will not be published.


*