The strike of 0.045 million dock workers at ports on the east coast of the United States and the Gulf Coast has entered its second day. Sources said that labor and management have not yet arranged negotiations.
Due to the lack of progress, people are beginning to worry that transportation disruptions could last for a long time. The International Dockworkers Association (ILA) strike has impeded the transportation of goods from food to cars from Maine to dozens of Texas ports, and analysts have warned it will cost the economy billions of dollars every day.
President Biden's administration pressured US port employers to increase their treatment to ensure an agreement with the dockworkers to end the strike.
Biden told reporters on Wednesday: “They have made incredible profits. Profits have exceeded 800% since the COVID-19 pandemic, and the owners have proffered tens of millions of dollars from it. Now it is time for them to sit down at the negotiating table and end the strike”.
Economists said that since companies have sped up delivery of key products in recent months, the strike will not lead to an increase in consumer prices in the early stages. However, economists at Morgan Stanley believe that long-term work stoppages will eventually permeate prices, and food prices may react first.
Sean Connolly, CEO of packaged food manufacturer Conagra, said on Wednesday that the company had purchased ingredients in advance and worked with suppliers for several months to prepare for the strike. “If the problem persists, it will be a bigger problem for everyone,” he said. ”
As of Tuesday, more than 38 container ships were stranded in US ports, compared to just three on the Sunday before the strike, according to Everstream Analytics.
Stew maker Newell Brands (Newell Brands), which has hundreds of containers filled with products made in Asia, arrived at West Coast ports this week after being diverted from the east coast of the United States two or three months ago.
The company said there was “a little bit of congestion” at West Bank ports, but they are still operating at full capacity.
ILA representing 0.045 million port workers went on strike on Tuesday after negotiations with the United States Maritime Federation (USMX) over a new six-year contract broke down. The union is seeking an hourly wage increase of $5 a year for the next six years.
USMX said on Wednesday that it is focused on resuming negotiations, but they “cannot agree on the preconditions for resuming negotiations.”