At 12:01 a.m. Eastern Time on October 1, 2024, a total of 36 U.S. East Coast and Gulf Coast ports shut down when over 45,000 dockworkers and members of the International Longshoremen’s Association (ILA) went on strike in response to failed negotiations with the U.S. Maritime Alliance (USMX). While the looming strike was no secret to manufacturers and retailers potentially impacted, its effect is no less detrimental to the economy.
With details swirling across news channels, our aim is to provide you with the most updated information, current and future effects, actions taken and what to expect.
Port Strike Details
Port Labor Requests
The current requests from the ILA dockworkers are:
- A 77 percent pay raise over the next six years, with a nearly 50 percent counteroffer from the USMX already rejected
- A stop to future automation and technology from replacing human jobs
- Improved healthcare benefits
- Additional contributions to the union’s retirement plans
Port Strike Impacts
While former National Labor Relations Board agent and consulting executive, Jason Greer, doesn’t believe the wage increase is “economically feasible,” a lengthy port closure would be an even greater economic hit. A JP Morgan analyst estimates the strike could cost the U.S. economy up to $5 billion per day of the shutdown.
Immediate impacts include ships at port either remaining anchored with cargo untouched or relocating to an open port — which would further delay product shipments or result in the potential loss of any perishable items. If the strike extends beyond seven to 10 days, it will disrupt global supply chains across many industries, from grocery and produce to electronics, appliances and furniture.
Proactive Actions and What to Expect
In positive news, Vendors have been proactively monitoring the situation for the past few months. Most Vendors pulled forward containers in anticipation of the strike and were actively sourcing inventory in Q3 for additional on-hand goods in the event the strike persists.
Many NMG Members also took advantage of our recent PrimeTime specials to stock up on quantities of goods. However, if the strike lasts for an extended period, retailers could encounter backorder situations.
Please know that your NMG team is working with all Vendor partners to mitigate the impact of this strike. We will continue to communicate as new information becomes available.
