Some 45,000 union workers might stroll off the job at seaports on the U.S. East and Gulf Coasts on Oct. 1, cutting off vital trade arteries just weeks ahead of the. nation's presidential election.

A strike would hit 36 ports that manage about half of. U.S. ocean imports. That could impact availability of a series of. goods from bananas to clothing to vehicles delivered by means of container,. while creating weeks-long backlogs at ports. It could also stoke. shipping boost that may be passed on to voters already. frustrated with housing and food inflation, according to. logistics specialists.

WHAT'S THE CONCERN? The International Longshoremen's Association (ILA) union. representing workers at 36 ports from Maine to Texas and the. United States Maritime Alliance employer group appear to have. strike an impasse over pay. The present six-year contract expires. at midnight on Sept. 30.

A strike at all East Coast and Gulf of Mexico ports would be. the very first for the ILA given that 1977. The White House said it is not trying to assist broker a deal, as. it did in 2015 throughout West Coast talks, and a Biden. administration official has stated the President would not utilize his. federal powers to block a strike.

CARS, EQUIPMENT AND PARTS. Ports in the negotiating group handled $37.8 billion worth of. car imports throughout the 12 months ended June 30, 2024,. according to S&P Global Market Intelligence. The Port of. Baltimore, Maryland, leads the nation in car deliveries.

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

The ports likewise lead the U.S. in shipments of machinery,. made steel and precision instruments, being available in at $97.4. billion, $16.2 billion and $15.7 billion, respectively, S&P. Global Market Intelligence data revealed.

AGRICULTURE

Three-quarters of the nation's banana imports from nations. like Guatemala and Ecuador land at ports on the East and Gulf. Coasts, stated 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 products and would have a substantial. impact on chilled or frozen meat and eggs, stated Mike Steenhoek,. executive director of the Soy Transport Union.

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

About 45% of all waterborne U.S. pork exports and 30% of. beef exports were delivered via East Coast and Gulf Coast ports in. the first 7 months of this year, said U.S. Meat Export. Federation representative 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 information. and the U.S.A. Poultry & & Egg Export Council.

DURABLE GOODS AND ENERGY

Retailers represent roughly half of all container volumes. Lots of U.S. retailers currently have actually rushed in deliveries of year-end. holiday items.

The ports that would be affected by a prospective strike bring. over half of the country's knitted and non-knitted clothing,. valued at $32.8 billion combined, also furniture 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 remain. largely unaffected by a strike involving more labor-intensive. container cargo. The very same uses to coal exports from Norfolk,. Virginia, specialists stated.

HIGHER COSTS, BIG HOLD-UPS

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

The top five ports in the working out group - New york city and. New Jersey; Savannah, Georgia; Houston; Norfolk; and Charleston,. South Carolina - handled more than 1.5 million 20-foot. comparable units

(source: Reuters)