Home HomeSwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

Major Strike in US Ports – Container Chaos Threatens

Container chaos and delays threaten in the USA since dockworkers, just five weeks before the presidential election in the USA, have gone on a major strike. The strike can also create new inflation impulses in the world's largest economy.

» Updated: 01 October 2024, 10:51

» Published: 01 October 2024

Major Strike in US Ports – Container Chaos Threatens
Photo: Damian Dovarganes AP/TT

Nearly 40 ports along the entire East Coast and Gulf Coast in the south – including major ports in New York, New Jersey, Savannah, and Houston – are affected.

The strike breaks out since employers and unions representing 45,000 port workers in the USA have not been able to agree on wage increases and new writings on automation issues in the agreement that expired at the turn of the month in September-October.

Containers and Car Parts

The port workers' union – International Longshoremen's Association (ILA) – has specifically targeted the strike actions against container traffic and deliveries of car parts and cars to and from the USA. Freight within energy, bulk goods, waste management, and road salt is exempt. Exceptions will also be made not to affect military ship traffic and cruise ships.

The strike is the largest in the USA's ports since 1977.

ILA has in its bid to the employers demanded a wage increase of 77 percent over six years – including to cover up for the inflation that has eaten away at the members' purchasing power in recent years. The union also wants to stop all forms of automation.

The employers have offered a wage increase of 50 percent and want to keep an earlier writing on a certain automation process.

"We are prepared to fight for this as long as it takes," says ILA boss Harold Daggett in a press release.

Analysts have warned that a prolonged strike can create major disruptions in supply chains, which in turn will push up prices in both producer and consumer levels in the USA.

Losses of 46 Billion

USA's outgoing president Joe Biden said as recently as on Sunday "no" when he was asked if he would stop the strike with reference to the Taft-Hartley Act, which gives the president the opportunity to prohibit industrial actions in labor market conflicts for 80 days.

Economists at JP Morgan Chase & Co have calculated the losses caused by the strike to up to 4.5 billion dollars (equivalent to 46 billion kronor) per day.

Delays and logistical problems that arise as a result of a week's strike are estimated to take a month to resolve, according to Oxford Economics.

Tags
TTT
By TTThis article has been altered and translated by Sweden Herald

More news

New French obstacles for Airbnb
1 MIN READ

New French obstacles for Airbnb

The Government Seeks Support for Those Affected by Northvolt
1 MIN READ

The Government Seeks Support for Those Affected by Northvolt

The regional tax will be raised next year
1 MIN READ

The regional tax will be raised next year

Astra Zeneca's China Chief Arrested by Police
1 MIN READ

Astra Zeneca's China Chief Arrested by Police

More rate cuts - but risk of turmoil with Trump
2 MIN READ

More rate cuts - but risk of turmoil with Trump

Svantesson: Trump's policy may increase inflation
2 MIN READ

Svantesson: Trump's policy may increase inflation

Major Banks Lower Mortgage Rates
1 MIN READ

Major Banks Lower Mortgage Rates

Central Bank Economist: Central Bank Cuts Interest Rate Too Late
2 MIN READ

Central Bank Economist: Central Bank Cuts Interest Rate Too Late

How You Are Affected by Lowered Interest Rates
2 MIN READ

How You Are Affected by Lowered Interest Rates

Thedéen expects turmoil after Trump's victory
2 MIN READ

Thedéen expects turmoil after Trump's victory

Inflation upswing does not threaten interest rate cuts
3 MIN READ

Inflation upswing does not threaten interest rate cuts

Stockholm Stock Exchange rises after interest rate cut
1 MIN READ

Stockholm Stock Exchange rises after interest rate cut

Most up on Asian stock exchanges
1 MIN READ

Most up on Asian stock exchanges

This is how your wallet can be affected by Trump's victory
2 MIN READ

This is how your wallet can be affected by Trump's victory

Cheerful on Wall Street after Trump win
1 MIN READ

Cheerful on Wall Street after Trump win

Thousand-kronor notes to be picked up when the Central Bank increases the pace
3 MIN READ

Thousand-kronor notes to be picked up when the Central Bank increases the pace

Swish up and running again after disruption
1 MIN READ

Swish up and running again after disruption

Trump's company is soaring on the stock exchange
1 MIN READ

Trump's company is soaring on the stock exchange

Swedish Export Threatened by Trump Victory
2 MIN READ

Swedish Export Threatened by Trump Victory

Sameby's appeal against mining company rejected
1 MIN READ

Sameby's appeal against mining company rejected