If a new labor agreement is not reached by October 1, 45,000 dockworkers in the eastern United States and along the Mexican coast will go on strike.

    At a time when the U.S. is shifting its focus from fighting inflation to boosting economic growth, if the supply chain is silted up, not only will growth run into headwinds, but inflation will return.

    Harold Daggett, leader of the International Longshoremen's Association, North America's largest longshoremen's union, recently issued a statement: "If there is no new master contract agreement by Tuesday, October 1, 2024, the sleeping giant is ready to roar."

    The American Longshoremen Union is demanding a raise of nearly 80 percent over six years, but management doesn't want to make such a big concession. Terminal operators and Marine carriers represented by the United States Maritime Alliance (USMX) said in August that their offer included an "industry-leading" wage increase, close to the 32 percent raise given to longshoremen on the U.S. West Coast last summer.

    The International Longshoremen's Association also strongly opposes the use of terminal automation systems. However, automation is the general trend of the development of global terminals, whether it is China, the Netherlands, the United Arab Emirates, are vigorously improving the level of terminal automation to improve the efficiency of terminal operation.

    Available information shows that if the aforementioned terminal strikes, it will affect more than half of all containerized cargo in the United States. It is estimated that a week-long strike could cost the economy $7.5 billion. Millions of boxes of specialty goods such as bananas, plywood and cars could be affected.

    If a strike occurs, imported auto parts from the United States would be particularly hard hit. That could put automakers in swing states like Michigan and Georgia in trouble.

    In addition, banana imports, the largest fruit consumption in the United States, will also be affected by the strike. Two-thirds of all bananas imported into the United States come through ports on the East Coast and along the Mexican coast.

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