The US port strike is bad news for everyone from farmers to GMs

After months of negotiations ended without agreement, About 45,000 port workers went on strike on Tuesday morningThey promised to fight “as long as necessary” to get what they demanded.

This is likely to have far-reaching consequences for the entire US economy; Nearly every industry relies on major ports on the East and Gulf Coasts to deliver daily shipments of equipment, food and supplies. Ports and facilities that accommodate about 51% of the country's total port capacity are affected by the strikes, according to the ministry Miter Corporation,

As the International Longshoremen Association (ILA) was on the verge of a strike against the companies, port authorities and terminal operators represented by the United States Maritime Alliance (USMX), cargo shipping companies began warning their customers to adjust their plans ahead of the strikes. While some have likely been successful, many companies are expected to feel the pain in the coming days.

“These people today don’t know what a strike is,” ILA President Harold Dagget said in one video Last month he warned that his union could “cripple” the US economy. “Everything in the United States comes on a ship.”

As Dagget noted, the impact of the strike is likely to be far-reaching, likely impacting industries that rely on materials such as steel and wood. Nearly 180 trade associations represent companies across a variety of industries – including automakers, retailers, toy makers and even companies that sell Halloween costumes warned that the strike will be “devastating.”

Non-perishable goods are expected to remain at ports until action is taken. Tire companies like Goodyear and Michelin rely heavily on the affected locations, as do automakers like General Motors and Hyundai Motor Co. Bob's Furniture, Home Depot and Ikea are also top importers at East and Gulf Coast ports. CNBC reported.

The agricultural industry is also expected to be one of the sectors most affected by the work stoppages.

Grocers and restaurants are likely to have difficulty getting fresh fruits and vegetables, particularly from areas in Central and South America, the longer the strike lasts. According to the ILA, 75 percent of U.S. bananas, or more than 3.8 million tons, arrive at the ports where the ILA operates each year American Farm Bureau (AFB).

In addition, almost 90% of imported cherries, 85% of canned goods, 82% of hot peppers and 80% of chocolate. Much of the country's imports of beer, wine, whiskey, scotch and rum also arrive in containers at ILA ports, along with more than 100 other food categories.

The strikes are also affecting companies shipping products out of the country. About 30% of U.S. agricultural exports by waterway, accounting for three-quarters of total U.S. agricultural exports by volume, are expected to be disrupted, the release said AFB.

“(N)early 80 percent of waterborne poultry exports leave East Coast ports, 56 percent of raw cotton, 36 percent of red meat, 30 percent of dairy products and even six percent of soybeans are all exported in containers through these ports,” Daniel said Munch, economist at AFB, last week.

But at this point it is difficult to say how much damage the strikes will inflict on the global economy as a whole, or even on the United States alone. Estimates range from up to $540 million per day The conference boardup to 5 billion dollars a daysaid JP Morgan. Up to 100,000 jobs are expected to be affected, Oxford Economics said last month.

“It would be unreasonable to allow a contract dispute to cause such a shock to our economy,” Suzanne Clark, president of the U.S. Chamber of Commerce, said in an interview letter to President Joe Biden on Monday. “(The ports) are also critical to many small businesses, including trucking companies, restaurants and others whose livelihoods depend on these ports.”