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A longshoremen's strike at ports along the East and Gulf Coasts would lead to economic chaos and supply chain nightmares, with far-reaching impacts on businesses, consumers and even your kitchen table.

The International Longshoremen's Association (ILA), with around 45,000 workers, is prepared to strike on Tuesday, but talks with shipping group US Maritime Alliance (USMX) are not planned today.

A strike on October 1 would effectively close 36 ports along the East and Gulf Coasts, creating supply chain shortages and driving up prices for a wide range of goods for American consumers, costing the economy an estimated $4,000. would cost $5 billion per day. according to news sources.

Retailers like Costco were already shipping months in advance and accelerating orders for holiday goods ahead of a possible port strike, which news reports said was signaled by a spike in container imports and freight rates in July and August.

The affected ports include New York and New Jersey, which is the third largest port in the country in terms of cargo throughput volume.

Consumers would initially notice a shortage of perishable products as grocery shelves could be devoid of popular fruits like bananas within weeks, as about two-thirds of bananas in the U.S. arrive at ports on the East Coast.

Negotiations between the ILA and USMX have been stalled for months.

Here are the current issues and how they will affect you.

What is the core of the labor conflict?

Union workers at ports on the East and Gulf Coasts earn a base wage of $39 an hour after six years of employment, compared to reports that union workers on the West Coast earn $54.85 an hour.

The International Longshoremen's Association is calling for a 77% pay increase over six years, as well as further restrictions and bans on the automation of cranes, gates and container movements used in loading and unloading cargo.

According to news sources, USMX responded with an offer of 40% wage increases, but the union rejected it, calling the offer “a joke.”

There has been no ILA strike against these ports since 1977.

Which products would be affected by a port strike?

A port strike would impact vehicle imports, auto parts, machinery, manufactured steel, precision instruments, computers, electronic parts and alcohol – 80% of imported beer, wine, whiskey and Scotch and 60% of rum arrives at ports on the East and Gulf Coasts.

The Port of Baltimore, Maryland is the nation's leader in automobile transportation. The Port of Philadelphia carries fruits and vegetables, while the Port of New Orleans delivers coffee and wood products such as plywood.

Agricultural impacts such as the import of bananas and fruits, coffee and cocoa or the export of soybeans and soybean meal would be noticeable. However, an even greater impact would be felt on refrigerated or frozen meat products, seafood and eggs, which require refrigerated containers that do not have a very long shelf life.

The Port of Wilmington, Delaware is the leading port for Dole Fresh Fruit Co. and Chiquita Fresh North America and receives about two-thirds of all banana imports into the United States

“Any fruit that arrives after Oct. 1 goes into the trash,” Peter Kopke Sr. of Port Washington-based importer Kopke Fruit told The Orange County Register. “And all the people who invested in this business are going to lose a fortune.”

Knitted and non-knitted clothing, furniture, plywood and pharmaceutical products, and year-end Christmas items would be among the endless list of products affected by the strike.

Officials estimate it could take between four and six days to clear the backlog in a one-day strike, and even weeks or longer if the strike extends over a week.

On By John Fenwick

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