On Tuesday, the deadline is definitely over. Then, the dockworkers' union in the USA, with 45,000 members, will go on strike if the union's wage demands are not met.
A strike would mean that 36 ports from the state of Maine in northeastern USA to Texas could be affected, which in turn would affect around half of all container freight in the USA. The cost to the American economy risks being extensive, according to the major bank JP Morgan, approximately 5 billion dollars daily, equivalent to 50 billion kronor, reports Financial Times.
The strike comes at an inopportune time for several reasons. The American economy has entered a new phase where the central bank, Federal Reserve, recently implemented the first interest rate cut in four years. A port strike would lead to higher freight prices and ultimately higher consumer prices and rising inflation – exactly what Federal Reserve does not want to see.
What do you think?