Union Workers Strike at U.S. Seaports

(Reuters) – On October 1, approximately 45,000 union workers walked off the job at seaports on the U.S. East and Gulf Coasts, disrupting vital trade routes ahead of the presidential election.

The International Longshoremen’s Association (ILA) represents dockworkers at 36 ports, currently deadlocked with the United States Maritime Alliance (USMX) over wage disputes. This strike marks the first coast-wide ILA action since 1977, halting roughly half of the U.S. ocean shipping flow. Projections suggest a two-week strike could extend port recovery to 2025, according to Sea-Intelligence, a Copenhagen shipping advisory firm.

Company Reactions

Here’s a summary of responses from key global companies regarding the potential strike:

• Costco (NASDAQ:COST): CEO Ron Vachris mentioned plans to pre-ship goods and utilize different ports to prepare for holiday sales.

• Maersk: The Danish shipping giant stated that a one-week shutdown could lead to 4-6 weeks of recovery time, with increasingly significant backlogs.

• C.H. Robinson: Mia Ginter, the director of North American shipping, noted the company has been aiding clients in early imports and diversifying shipping options.

• Maher and APM Terminals: They are extending terminal hours at Port of New York and New Jersey for cargo clearance before the strike.

• Hapag-Lloyd: The shipping company is monitoring the situation and will keep its customers updated.

• Andreas Stihl AG & Co: The firm is creating contingency plans to maintain exports from its Virginia plant during the strike.

• Designer Brands (NYSE:DBI): Chief supply chain officer Ronnie Robinson stated they are shifting half of their imports to the West Coast to avoid delays with key retail clients.

• NAM: Jay Timmons, CEO of the National Association of Manufacturers, warned that a strike would create widespread disruption in U.S. supply chains, affecting billions of dollars worth of goods across various sectors, including food, vehicles, and electronics.