This browser does not support the Video element.
Dockworkers strike threatens US supply chain
Thousands of dockworkers from Maine to Texas have gone on strike, demanding a pay raise and fair working conditions. The strike threatens to disrupt the U.S. supply chain and could cost the economy more than $4 billion a day.
NEW YORK - On Tuesday, 36 U.S. ports, including New York and New Jersey, were shut down as the union representing approximately 45,000 dockworkers went on strike for the first time since 1977.
The dockworkers started protesting early Tuesday on the East Coast.
Port strike 2024: Map of affected locations, product impacts, updates
While any port can handle any type of goods, some ports are specialized to handle goods for a particular industry.
Here's where the port strike is taking place in our area.
Where are the ports located?
The New York skyline behind the Port of Newark in Newark, New Jersey, US, on Tuesday, Oct. 1, 2024. Dockworkers walked out of every major port on the US East and Gulf coasts for the first time in nearly 50 years, staging a strike that could ripple ac …
The ports are located in:
- Newark, New Jersey
- Elizabeth, New Jersey
- Bayonne, New Jersey
- Brooklyn, New York
Click here to see an interactive map of where the ports are exactly.
What do ports do?
Ports serve as docking areas for ships, facilitating the loading and unloading of both passengers and cargo. They play a vital role as transportation hubs, enabling the distribution of goods to consumers through multiple channels, including:
- Railroads
- Highways
- Air Transit
- Marine Highways
What are the issues on the East Coast?
This browser does not support the Video element.
Dockworkers begin walkout along East Coast ports
A labor agreement involving thousands of dockworkers along the East and Gulf coasts lapsed on Monday, signaling them to walk off the job overnight. FOX 5 NY's Briella Tomassetti has the details.
The International Longshoremen’s Association is demanding significantly higher wages and a total ban on the automation of cranes, gates and container-moving trucks that are used in the loading or unloading of freight at 36 U.S. ports. Those ports handle roughly half of the nations’ cargo from ships.
The contract between the ILA and the United States Maritime Alliance, which represents the ports, expired Tuesday. Some progress was reported in talks late Monday, but the union went on strike anyway.
The union’s opening offer was for a 77% pay raise over the six-year life of the contract, with President Harold Daggett saying it’s necessary to make up for inflation and years of small raises. ILA members make a base salary of about $81,000 per year, but some can pull in over $200,000 annually with large amounts of overtime.
Monday evening, the alliance said it had increased its offer to 50% raises over six years, and it pledged to keep limits on automation in place from the old contract. The alliance also said its offer tripled employer contributions to retirement plans and strengthened health care options.
How does the port strike affect consumers?
If drawn out, the strike would force businesses to pay shippers for delays and cause some goods to arrive late for peak holiday shopping season – potentially impacting delivery of anything from toys or artificial Christmas trees, to cars, plywood, coffee, fruit and vegetables.
Americans could also face higher prices as retailers feel the supply squeeze.
"Everyone from the shipping lines to trade groups and maritime industry analysts also warns of widespread ramifications in the global supply chain," reported The Maritime Executive, a maritime industry magazine and newsletter. "Sea-Intelligence has estimated that for each day of a strike, it would take four to six days to clear the backlog. They wrote that even a two-week strike could have ramifications into 2025."
In addition, according to the American Farm Bureau Federation, the affected ports handled 75% of the country's banana imports.
MAE ANDERSON and ANNE D'INNOCENZIO, with the Associated Press, helped contribute to this report.