Some 45,000 union employees could stroll off the task at seaports on the U.S. East and Gulf Coasts on Oct. 1, cutting off crucial trade arteries simply weeks ahead of the. country's governmental election.

A strike would strike 36 ports that manage about half of. U.S. ocean imports. That could affect accessibility of a variety of. items from bananas to clothing to automobiles delivered via container,. while developing weeks-long backlogs at ports. It could also stoke. shipping cost increases that may be passed on to citizens currently. annoyed with real estate and food inflation, according to. logistics experts.

WHAT'S THE PROBLEM?

The International Longshoremen's Association (ILA) union. representing workers at ports from Maine to Texas and the United. States Maritime Alliance employer group appear to have struck an. impasse over pay. The present six-year agreement ends at. midnight on Sept. 30.

A strike at all East Coast and Gulf of Mexico ports would be. the first for the ILA given that 1977.

The White House said it is not attempting to assist broker an offer,. as it did last year during West Coast talks, and a Biden. administration authorities has said the President would not utilize his. federal powers to block a strike.

CARS, MACHINERY AND PARTS

Ports in the negotiating group managed $37.8 billion worth. of lorry imports during the 12 months ended June 30, 2024,. according to S&P Global Market Intelligence. The Port of. Baltimore, Maryland, leads the country in vehicle shipments.

Automobile parts are likewise an essential import on the East Coast and Gulf. of Mexico, with deliveries from Europe harder to reroute. than those from China, logistics professionals said.

The ports also lead the U.S. in shipments of equipment,. produced steel and accuracy instruments, can be found in at $97.4. billion, $16.2 billion and $15.7 billion, respectively, S&P. Global Market Intelligence data showed.

AGRICULTURE AND PHARMACEUTICALS

Three-quarters of the nation's banana imports from nations. like Guatemala and Ecuador land at ports on the East and Gulf. Coasts, said Jason Miller, interim chair of Michigan State. University's department of supply chain management.

A strike also would affect container exports of soybeans,. soybean meal and other items and would have a substantial. influence on cooled or frozen meat and eggs, said Mike Steenhoek,. executive director of the Soy Transport Union.

The U.S. also imports coffee and cocoa in big volumes and. exports cotton.

The $18-billion-a-year U.S. beef and pork export market and. the $5.8 billion poultry and egg export sector depends on. refrigerated containers that can not sit idle for long.

About 45% of all waterborne U.S. pork exports and 30% of. beef exports were shipped through East Coast and Gulf Coast ports in. the first 7 months of this year, said U.S. Meat Export. Federation spokesperson Joe Schuele.

More than a quarter of all U.S. egg and egg item exports. and around 70% of all poultry meat exports are delivered from. ports along the East and Gulf Coasts, according to Customs data. and the USA Poultry & & Egg Export Council.

The impacted ports handle more than 91% of containerized. imports and 69% of containerized exports of U.S. pharmaceutical. items, according to Everstream Analytics.

More one-third of containers leaving the U.S. with. lifesaving medications leaves from the port in Norfolk,. Virginia, while nearly one-third of containerized pharmaceutical. imports go into the country through the port in Charleston, South. Carolina.

DURABLE GOODS AND ENERGY

Sellers represent roughly half of all container volumes. Lots of U.S. retailers currently have actually entered shipments of. year-end vacation goods.

The ports that would be affected by a potential strike bring. over half of the country's knitted and non-knitted garments,. valued at $32.8 billion combined, too furnishings valued at. $ 23.4 billion, according to S&P Global Market Intelligence.

Though the Gulf Coast ports of Houston and New Orleans are. major oil and gas delivery centers, those commodities would stay. mostly untouched by a strike involving more labor-intensive. container freight. The exact same uses to coal exports from Norfolk,. Virginia, specialists stated.

HIGHER COSTS, BIG DELAYS

In broad terms, a strike would raise expenses for shipping. while also enforcing prolonged hold-ups.

The leading 5 ports in the negotiating group - New york city and. New Jersey; Savannah, Georgia; Houston; Norfolk; and Charleston. - managed more than 1.5 million 20-foot comparable systems (TEUs). valued at $83.7 billion in August, according to John McCown,. senior fellow at the Center for Maritime Strategy. About. two-thirds of that cargo was inbound, while the remainder was. outbound, he stated.

Trade disturbances from a work stoppage would begin. right away, sending out rates higher and rippling through the U.S. economy, logistics specialists cautioned.

Analysts at Sea-Intelligence, a Copenhagen-based shipping. advisory firm, estimated that it could take anywhere from 4. to six days to clear the stockpile from a one-day strike.

Maersk, among the largest suppliers of ocean transport. and a member of the company group, alerted that a one-week. shutdown might need approximately 6 weeks of healing time, with. significant stockpiles and hold-ups compounding with each passing. day..

(source: Reuters)