Retailers, manufacturers, and other shippers are already dealing with higher costs and longer transit times due to labor talks in U.S. port on the East Coast.

The contract of the International Longshoremen's Association, which covers 45,000 dockworkers in three dozen ports from Maine to Texas, expires Sept. 30. The union may strike if there is not a deal reached by that date. This would happen during the crucial holiday container shipping season, and the re-election campaign of labor-friendly U.S. president Joe Biden.

ILA canceled Monday the planned start of this week's talks with U.S. Maritime Alliance citing a member of that employer's group using automation technology in contravention of previous agreements.

ILA President Harold Daggett warned members that they would strike if no deal was reached before the expiration of their current contract. He warned locals in important trade hubs such as New York/New Jersey, and Houston that they should be prepared to strike on October 1, according to the union.

In the United States, seaport strikes are rare. However, there is a lot of noise and anxiety when contract negotiations begin. This is because any slowdown in work or stoppage could affect millions of dollars worth of products, from furniture to factory equipment and food to medicine.

Gene Seroka, the Port of Los Angeles' Executive Director, said on Wednesday that this week's ILA development was not uncommon.

Seroka stated that there were many stops and starts during the negotiations.

In May, the East Coast ports and Gulf of Mexico held a slight advantage over their rival West Coast counterparts. Vincent Golebiowski told Reuters that he had been more concerned about avoiding transit delays by rerouting shipments from the Suez Canal because of Houthi militants attacks in the Red Sea.

The ILA's warning of a strike this week will test the nerves and patience of many shippers, including Golebiowski.

Seroka said on Wednesday that some importers had moved "fractional quantities" of cargo to Los Angeles from East Coast and Gulf Coast ports as a hedge in the face of U.S. contract negotiations, Red Sea disruptions, and Panama Canal restrictions.

Los Angeles and other West Coast port cities lost market share prior to the International Longshore and Warehouse Union contract agreement in June last. This agreement was the culmination of 13 months' worth of back-and-forth negotiations.

Chris Jones, executive vice president of trade data provider Descartes Systems Group, said: "There was much saber rattling but goods were moved." Reporting by Lisa Baertlein, Los Angeles. Editing by Leslie Adler