The lack of progress is raising concern among those who rely on shipments, as they fear the disruption could be prolonged.
The strike by the International Longshoremen’s Association (ILA) union has blocked the shipment of goods, from food to cars, through dozens of ports from Maine to Texas, which analysts warn will cost the economy billions of dollars a day.
President Joe Biden’s administration has pressured American port employers to increase their offer to reach an agreement with dockworkers to end the strike.
“They made incredible profits, more than 800% since the pandemic, and the owners are making tens of millions of dollars from this,” Biden told reporters Wednesday. “It’s time for them to come to the table and end this strike.”
Economists have said the strike will not initially raise consumer prices as companies have accelerated shipments of key products in recent months. However, a prolonged shutdown will eventually have repercussions, with food prices likely to react first, according to Morgan Stanley economists.
Packaged food company Conagra purchased ingredients in advance and has been working with suppliers for months to prepare for the strike, its CEO, Sean Connolly, said Wednesday. “If it becomes a long-term problem, it will be a bigger problem for everyone,” he said.
More than 38 container ships were stuck in U.S. ports on Tuesday, compared to just three on Sunday before the strike, according to Everstream Analytics.
The ILA, which represents 45,000 dock workers, began its strike on Tuesday after negotiations with the United States Maritime Alliance (USMX) for a new six-year contract failed. The union is seeking a wage increase of $5 an hour each year for six years.
Its leader Harold Daggett is also seeking to end automation projects that he says threaten union jobs.
“We are prepared to fight as long as it takes, to stay on strike as long as it takes, to get the wages and protections against automation that our ILA members deserve,” Daggett said Tuesday.
The Biden Administration wants USMX to offer more advantageous treatment to port workers.
“Foreign ocean carriers have seen record profits since the pandemic, when longshoremen put themselves at risk to keep ports open. It’s time for those ocean carriers to offer a strong, fair contract that reflects the contribution of ILA workers to our economy now.” their record earnings,” Biden said in a post on X late Tuesday.
Biden directed his team to monitor the possibility of price gouging that benefits foreign ocean carriers, the White House said. Biden has repeatedly said he will not intervene to end the strike.
Morgan Stanley economists said in a note published late Tuesday that the strike could hurt growth and increase inflation “but only if it is long-lasting,” noting that the consequences for transportation should be limited unless the strike ends. prolong
The strike, the ILA’s first major strike since 1977, affects 36 ports – including those in New York, Baltimore and Houston – that handle a variety of containerized goods, from bananas to clothing and automobiles. The strike could cost the US economy approximately $5 billion a day, JP Morgan analysts estimate.
