Overview

• The International Longshoremen’s Association (ILA) initiated the strike after failing to reach an agreement with the United States Maritime Alliance (USMX) over a new contract.
• Key demands from the union include a 77% wage increase over six years and a complete ban on automation projects at the ports.
• The strike affects crucial ports like New York, Baltimore, and Houston, which handle a significant portion of U.S. imports, including perishable goods like bananas and mangoes.
• Economic analysts warn that the strike could cost the U.S. economy billions of dollars per day and potentially reignite inflation, especially if it extends into the holiday season.
• President Joe Biden has stated he will not intervene using the Taft-Hartley Act, despite calls from businesses and economic advisors for federal action to mitigate the disruption.