The Congressional Research Service (CRS) has released a report entitled, The Port Strike’s Effect on Maritime Commerce, as a quick rundown on Atlantic and Gulf port strike economic impacts.  CRS summarized the current strike by writing:

“The strike by port dockworkers (commonly called longshoremen) at East and Gulf Coast ports has raised concerns about the economic impact should the strike last more than a few days. The International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance, Ltd., the employers representing ocean carriers and port terminal operators, have not been able to renew their six-year labor-management agreement that expired on September 30, 2024. Disagreement over wage increases and port automation reportedly are the main sticking points.”

And noted:

•    The ILA represents longshoremen at East and Gulf Coast ports that handle containerized cargo—the loading and unloading of container ships—as well as “car carrier” ships that carry automobiles. The strike will not shut down other port activity, such as the loading/unloading of oil and gas tankers, and dry bulk vessels carrying products like grain and coal in bulk form. The ILA also handles supplies for cruise ships; reportedly, they will continue to work these ships to avoid disrupting the public’s travel plans.

•    In 2022, East and Gulf Coast seaports accounted for 60% of the import and export containers shipped through U.S. seaports (the West Coast seaports accounted for 40%). 

•    The strike coincides with the start of the harvest season and the peak season for retail goods distribution in anticipation of year-end holiday sales. Common imports of containerized goods are apparel, beverages, household items such as furniture and appliances, and manufactured parts such as electric machinery parts and iron and steel products. On the export side, wood pulp and articles of wood account for a large number of loads, as well as aluminum and articles thereof, and oil seeds and grains.

•    Some East and Gulf Coast ports are important for certain industries and commodities. For example, 45% of the containers exported from Houston are loaded with resins or plastics. Raw cotton and poultry exporters are reliant on the Port of Savannah, which is the nation’s largest poultry exporting port. Philadelphia and Wilmington (Delaware) are rivals as the leading ports handling imports of fresh fruit in refrigerated containers. East and Gulf Coast ports handle 44% of the nation’s waterborne pork exports. Goods requiring refrigeration, such as poultry, pork, and fruit, are sensitive to delay, partly because of the energy required to keep the containers’ refrigeration units running.

•    Longshoremen drive new automobiles on and off car carriers. When the Francis Scott Key Bridge collapsed in Baltimore in March 2024, closing the nation’s largest port for the import and export of automobiles, automakers turned to other ports on the East Coast that handle cars: Brunswick (Georgia), Charleston, and New York/New Jersey. These ports are closed during the strike.

•    China is often the leading origin or destination for containerized goods at East and Gulf Coast seaports. Ships trading between these ports and China sail through the Panama Canal, which is slower but less costly than moving the goods by railroad across the United States to/from West Coast ports (referred to as the “landbridge” route).

The NAA recommends members call or email the White House, 202-456-1111 or click on Contact Us | The White House, to encourage federal intervention as authorized by the Taft-Hartley Act to end the strike and bring the parties together to negotiate.