Dockworkers strike shut East and Gulf Coast ports

Dockworkers from Maine to Texas went on strike at 12:01 a.m. ET as they rally for higher pay. The walk off threatens to halt trade at over three dozen ports along the East Coast and Gulf of Mexico.

The work stoppage by roughly 45,000 dockworkers at 36 ports could potentially strand 100,000 shipping containers and impact more than half of the nation’s shipping trade.

The United States Maritime Alliance (USMX), representing shippers, offered a 50% wage increase and proposed a contract extension for more negotiations.

However, the International Longshoremen’s Association (ILA) union has yet to respond. It had previously demanded a 77% pay raise over the six-year contract.

Analysts warn that a prolonged strike could cost the US economy $5 billion a day. It would also disrupt supply chains, raise prices, and affect small businesses more severely than larger retailers.

The last ILA strike was in 1977 and lasted 45 days.