Port strike begins in the country

Dockworkers at 14 of the country's largest ports went on strike early Tuesday morning after last-minute negotiations fell apart between their union and the Maritime Alliance over wage issues.

"As a result of the expiration of the master agreement between United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA), there is a work stoppage at The Port of Virginia and other ports along the U.S. East and Gulf coasts," the Port of Virginia reported on its official page.

The port assured that it hopes for a quick resolution of the situation in order to resume activities.

"Our hope is for a speedy resolution that allows The Port of Virginia to implement its resumption of operations plan to methodically and safely bring terminals back online," it highlighted.

Negotiations between the United States Maritime Alliance (USMX), which represents management, and the ILA union are stalled over the wage issue. However, the alliance detailed that both sides have moved away from their positions and hope this will allow negotiations to resume.

"Our offer would increase wages by nearly 50 percent, triple employer contributions to employee retirement plans, strengthen our health care options, and retain the current language around automation and semi-automation," the alliance wrote in a statement.

According to a source close to the talks consulted by AFP, the proposal mentioned by the alliance was rejected by the union.

ILA planned to launch a strike as soon as the current six-year agreement expired, at 11:59 p.m. EST Monday at ports on the East Coast and Gulf of Mexico.

The USMX represents the employers of 36 ports spread between the coasts of Maine, in the northeast, and those of Texas, in the south, passing through Florida, in the southeast of the country. The dockworkers’ union has 85,000 members across the United States, including workers at seaports, rivers and lakes.

Meanwhile, the strike threatens major companies. Walmart, Ikea, Samsung, Bob's Discount Furniture, LG and Home Depot are among the biggest importers through ports that could be affected by the situation.

"Retailers will face added costs, such as for shipping, additional warehouse space, trucking and restocking food and other perishable inventory," explained Jonathan Gold, vice president of supply chain and customs policy at the National Retail Federation, to Axios.

In addition, William George, research director at trade data aggregator Import Genius, warns that consumers could also be affected. "This is going to make a lot of money for the carriers, and that price is going to get passed on to the consumer," George explained.

Several experts and farm groups are also watching the dockworkers' strike closely. The stoppage could result in losses in the billions, although estimates vary.

Farmers will be affected because they will be unable to export their products, many of which are perishable. In addition to finding themselves with stock they can't sell or store for too long, farmers will see prices for their products drop because there will be excess inventory on the market, explained Kip Tom, former ambassador to the United Nations Food and Agriculture Agencies, in conversation with Fox.

Tom also explained that this comes in addition to the downward economic spiral and the impact of Hurricane Helene, which the expert recalled on social media, "Many [farm families] have invested everything they had to produce a crop that would feed, fuel and clothe Americans safely, affordably and nutritionally."

Tom called on the Biden-Harris administration to intervene and ensure that the ports remain open.

"President Biden needs to step in and show leadership and assure these ports all stay open. American workers from the farm gate to processors, logistics firms, dockworkers livelihoods depend on trade. Our customers worldwide depend on us!" wrote Tom on X.