Supply chain issues begin to take effect as port strike hits third day

Dozens of container vessels were stuck outside major U.S. ports as the International Longshoremen’s Association strike reached its third day on Thursday, Oct. 3.

According to Reuters, at least 45 container ships were lined up at major ports as the dockworkers remained on strike. In addition, CNBC reported that about “2,000 shipments may have been dropped at a port that was not their intended destination.”

The International Longshoremen’s Association began striking at 12:01 a.m. on Tuesday, Oct. 1. Tens of thousands of workers are asking for higher wages and more protections in contract negotiations with the United States Marine Alliance (USMX), which represents employers of the longshoremen industry on the East Coast and the Gulf Coast.

Only days into the strike, it already is slowing down the supply chain and will soon be reflected in the prices of everything from fresh fruit to automobiles. The Hill reported that the strike could cost the economy as much as $5 billion per day. In addition, the effects of Hurricane Helene create further complications in the nation’s supply chain.

President Joe Biden hinted to reporters on Thursday that progress is being made.

So far, the president has been supportive of the workers’ attempt at receiving a wage increase.

“Ocean carriers have made record profits since the pandemic and, in some cases, profits grew in excess of 800% compared to their profits prior to the pandemic,” Biden said in a statement issued on Oct. 1. “Executive compensation has grown in line with those profits, and profits have been returned to shareholders at record rates. It’s only fair that workers, who put themselves at risk during the pandemic to keep ports open, see a meaningful increase in their wages as well.”

However, it remains to be seen how long Biden would allow the strike to continue before intervening. A law established by the 1947 Taft-Hartley Act allows the president to intervene in strikes that could affect “national health or safety.” That process could lead to an 80-day stoppage of the strike. The last time the Taft-Harley Act was invoked was in 2002, when then-President George W. Bush used it to intervene in an 11-day strike at 29 West Coast ports involving a dispute with the International Longshore and Warehouse Union. LL

Land Line Associate Editor Tyson Fisher contributed to this report.