Potential Union Strike at New York/New Jersey Port Raises Concerns for Global Supply Chains

The Port of New York/New Jersey is preparing for a potential strike by the International Longshoremen's Association (ILA), the largest union in North America, representing over 85,000 longshoremen. A strike would halt five of the 10 busiest ports in North America and 36 ports along the East and Gulf Coasts, impacting 43%-49% of U.S. imports and billions in trade monthly. Cruise operations would continue.

Talks between the ILA and the United States Maritime Alliance (USMX) broke down over the summer, with no clear progress. The ILA recently voted unanimously to authorize a strike, and USMX believes the union has already decided to strike.

Port director Beth Rooney announced that ocean carriers and terminal operators are ramping down operations to avoid container pile-ups. Some carriers have embargoed export cargo from the Midwest to the East Coast. If a strike occurs, vessels will either wait offshore or slow steam to delay arrival. The Coast Guard will manage vessel flow post-strike.

147 vessels, carrying 686,181 twenty-foot equivalent container units (TEUs) valued at $34.3 billion, are en route to East Coast and Gulf ports by October 1. The strike could disrupt supply chains globally, particularly in Europe, Oceania, Latin America, and Asia.

The Biden administration will not invoke the Taft-Hartley Act to force union members back to work, urging both parties to return to negotiations. ILA President Harold Daggett warned that forced return would lead to deliberate slowdown, exacerbating supply chain issues.

Other ports, like Houston and Georgia, have posted strike contingency plans, including extended gate hours and weekend operations. The stalemate between ILA and USMX centers on wages and automation, with talks suspended over an automated gate system in Mobile, Alabama.

Logistics experts report an exodus of cargo from the East to West Coast in anticipation of a strike. The Port of Long Beach, California, is prepared to handle increased cargo if the East and Gulf Coast ports shut down.