A dockworker strike at ports along the East and Gulf coast would bring about economic chaos and supply chain nightmares with far reaching impacts to businesses, consumers and even your kitchen table.
The International Longshoremen's Association (ILA) with approximately 45,000 workers is prepared to strike on Tuesday, with no talks scheduled with the shipping industry's group US Maritime Alliance (USMX) today.
A strike on Oct. 1 would effectively shut down 36 ports along the East and Gulf coasts, causing shortages in the supply chain and driving up prices on a host of goods for American consumers and estimated to cost the economy up to $4.5 billion each day, according to news sources .
Retailers , such as Costco, having been shipping months in advance, expediting holiday goods orders ahead of the possible port strike, signaled by a surge in container imports and freight rates in July and August according to news reports .
Among the ports affected, are New York and New Jersey, which are the nation's third-largest port by volume of cargo handled.
Consumers would first notice shortages of perishable products, as grocery aisles could be bare of popular fruits like bananas within weeks, given that about two-thirds of bananas in the U.S. arrive in East Coast ports.
The negotiations between the ILA and USMX have been stalled for months.
Here are the issues at hand and how they will impact you.
What is at the heart of the labor dispute?
Union workers at ports in the East and Gulf coasts earn a base wage of $39 an hour after six years on the job compared to reports that West Coast union workers, which make $54.85 an hour.
The International Longshoremen's Association is demanding a 77% pay raise increase over six years and more restrictions and bans on the automation of cranes, gates and container movements used in loading or unloading of cargo.
According to news source s, USMX responded with an offer of 40% in wage increases, but the union rejected it, calling the counter “a joke.”
There hasn’t been an ILA strike against these ports since 1977.
What products would be impacted by a port strike?
A port strike would impact vehicle imports, auto parts, machinery, fabricated steel, precision instruments, computers, electronic parts and alcohol - 80% of imported beer, wine, whiskey and scotch and 60% of rum arrive at East and Gulf coast ports.
The Port of Baltimore, Maryland leads the nation in car shipments. The Philadelphia port leads in fruits and vegetables, New Orleans port brings in coffee and wood products such as plywood.
Agricultural impacts such as the imports of bananas and fruits, coffee and cocoa or exports of soybeans and soybean meal would be felt. However, even more significant impacts would be felt on the chilled or frozen meat products, seafood and eggs, which require refrigerated containers that cannot sit for very long.
The Port of Wilmington in Delaware is the leading port for Dole Fresh Fruit Co. and Chiquita Fresh North America, getting about two-thirds of all banana imports in the U.S.
“Any fruit that arrives after 1 October will be condemned to the trash can,” Peter Kopke Sr. of Port Washington-based importer Kopke Fruit told The Orange County Register . “And all of the people who have invested in that business will lose a fortune.”
Knitted and non-knitted apparel, furniture, plywood and pharmaceutical products and year-end holiday items would be among the endless list of products impacted by the strike.
Officials estimate that it could take anywhere from four to six days to clear backlog from just a one-day strike, and weeks or more if the strike stretches one week.
This article originally appeared on NorthJersey.com: Port strike: Dockworkers along East and Gulf ports prepared to picket. What to expect
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