A major strike threatens at midnight at ports on the East and Gulf Coasts

Tens of thousands of longshoremen are expected to go on strike at midnight, closing key ports on the East and Gulf coasts and halting deliveries of everything from fruits and vegetables to auto parts.

Consumers are only likely to feel the strain if the strike lasts several weeks and companies and logistics companies have taken preventive measures to mitigate the impact. Still, a work stoppage could still cost the U.S. economy between several hundred million dollars and up to $4.5 billion a day, analysts and business groups warn.

The ports handle about half of U.S. sea imports. According to various estimates, between 25,000 and 50,000 members of the International Longshoremen's Association could take part in a strike. The ILA has a total of 85,000 members. Union leaders argue that major global freight companies have benefited from supply chain bottlenecks during the pandemic that have driven up freight rates and say workers have not received a sufficient share of those profits.

A strike would end months of heated rhetoric between the union and the United States Maritime Alliance (USMX), which represents major ocean freight and port operators. The union is demanding wage increases and restrictions on automation at ports, which they say could cost jobs. The two sides did not negotiate in the days leading up to the possible work stoppage.

“The shipping companies represented by USMX want to enjoy the whopping billions in profits they will make in 2024 while offering ILA Longshore workers an unacceptable wage package that we reject,” the union said in a statement on Monday.

USMX, meanwhile, referred NBC News to a statement from last week calling on the ILA to return to the negotiating table. “USMX has made it clear that we value the work of the ILA and have great respect for its members,” the group said.

Several industries are preparing for the strike and have ordered goods in advance when it became apparent that the strike could start on October 1st. However, analysts expect more serious impacts if the strike lasts several weeks or longer. Trucking companies and other logistics companies are scrambling to get as much goods out of the ports as possible before a possible strike occurs.

Hardest hit are the massive port operations of New York and New Jersey, with about 4,500 workers in the region. New York Gov. Kathy Hochul said her state and the Port Authority of New York and New Jersey had expected the strike but warned of possible repercussions.

“We are working around the clock to move critical cargo out of our facilities – food, medical supplies and other essential supplies,” she said Monday. “We also work closely with the commercial trucking industry to ensure these goods reach their destination.”

Business groups have called on President Joe Biden to intervene under the Taft-Hartley Act of 1947. Under that authority, Biden could request a so-called 80-day “grace period,” which would force longshoremen to keep their jobs.

But while the White House has been in contact with the ILA and USMX in recent days, the president has no plans to invoke the law. Intervention could also rattle relations with organized labor 35 days before Election Day as Democratic Vice President Kamala Harris seeks to maximize her union support against former Republican President Donald Trump.

“Because this is collective bargaining, I don’t believe in Taft-Hartley,” Biden told reporters on Sunday.