East Coast Port Strike Looms at Midnight

By Anthony Birritteri, Editor-in-Chief On Sep 30, 2024

Thirty-six East and Gulf Coast ports, stretching from Maine to Texas and handling half of the nation’s ocean shipping, are set to close at midnight if a deal is not reached between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX). This would represent a strike of 45,000 dockworkers who are seeking higher wages and a ban on the automation of cranes, gates and container movements that unload and load the freight ships at different ports.

At the Port of New York and New Jersey, the strike would encompass 4,500 dock workers, but it would also impact a combined 600,000 related jobs the industry supports and billions of dollars a day in revenues. The last coast-wide port strike occurred in 1977 and lasted 12 days.

At a Port Authority of New York & New Jersey press conference today, New York Governor Kathy Hochul said the bistate agency has been working around the clock trying to deal with the impending crisis. “We’re deeply concerned about the impact that a strike could have on our supply chains, especially when it comes to critical goods like medical supplies. We’ve been working tirelessly, for weeks – but in earnest over the last week – to deal with every aspect of this [potential strike.]

The Port Authority and terminal operators have been removing cargo containers from vessels in preparation for the strike. Some containers were moved directly onto trucks, which were quickly sent off to their destinations. However, 100,000 containers will be sitting in one of 16 locations in the region, filled with everything from automobiles to consumer goods.

“I just spoke again with [Gov. Phil Murphy] about preparations,” Hochul said. “There has been intense coordination between New York and New Jersey government. However, we are hopeful that they [ILA and USMX) will reach an amicable resolution to the negotiations and avert a strike. But it’s our responsibility to be prepared for any scenario, and we take that very seriously.”

PANY&NJ Executive Director Rick Cotton commented, “While we have encouraged both sides to reach an amicable agreement at the bargaining table, all signs are that there will be a strike at midnight.”

Working with marine terminal operators and other partners, Cotton said the Port Authority will be able to shut down operations by midnight tonight, while the gates of the marine terminals will close at 5 p.m. this afternoon.

A potential strike will cost billions of dollars, but Beth Rooney, port director at the Port Authority, said at a Port Authority Board meeting a few weeks ago that this will be a deferred revenue scenario and not a revenue loss. “It’s not that the cargo can be diverted to another port. It’s cargo that will come to New Jersey once the strike is resolved,” she said.

She added that ocean carriers have also been putting embargoes on export cargo coming from the Midwest.

While all container and auto shipping activity at the Port of New York and New Jersey will cease in the event of a strike, bulk activity, including the import/export of road salt, cement, Belgian block, scrap metal, edible oils, municipal waste, and orange juice will continue. Cruise operations will also continue.

President Joe Biden has said he will not invoke the Taft-Hartley Act to stop the strike. Meanwhile, there is fear that the strike will escalate inflation and impact the holiday shopping season if it continues for an extended period.

To access more business news, visit NJB News Now.

Related Articles: