FOR IMMEDIATE RELEASE
October 1, 2024
NADEC Urges Resolution to Imminent Port Strike to Protect U.S. Exports
A major port strike on the U.S. East and Gulf Coasts is set to begin October 1, 2024, as negotiations between the 45,000 workers of the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) have stalled. The strike would impact 36 ports handling about half of U.S. seaborne imports. The key issue is wages, with the ILA deeming inadequate a nearly 50% wage increase offered by USMX. If unresolved, this would be the first coast-wide port shutdown since 1977.
The National Association of District Export Councils (NADEC) calls for an urgent resolution to the impending port strike affecting 36 East and Gulf Coast ports. This disruption could halt the movement of goods critical to U.S. exports, especially for small and medium-sized enterprises (SMEs), a significantly engine of our economy.
The strike is estimated to potentially be impacting $5 billion in daily economic activity, with 100,000 containers stalled at port. Container ships enroute to U.S. will not be able to unload. The ripple effects would be severe, causing widespread delays in the shipment of food, vehicles, and electronics. Each day of stoppage is expected to create five days of backlogged cargo, further straining supply chains during the critical holiday season.
NADEC emphasizes the grave risk this poses to small businesses, which lack the resources to absorb these disruptions. Most businesses that export are small businesses (97 percent). SMEs, which export over a trillion dollars annually, depend on timely port operations. Delays in shipping could lead to stock shortages, increased costs, and inflationary pressures, undermining their competitiveness in global markets. At harvest season agricultural exports will be significantly affected. Additionally, for every $1 billion in U.S. goods exports that are jeopardized, 6000 jobs are at risk.
NADEC urges all parties to resume negotiations and reach a win-win settlement that preserves the essential flow of U.S. goods. As a measure of last resort, we urge 80-day cooling-off period, a possible intervention through the Taft-Hartley Act. A prolonged strike could cripple the export sector and stunt economic recovery at a time when job creation and stability are most needed.
For media inquiries, please contact:
Sandra Vazeen, Communications Officer
National Association of District Export Councils
nadec@usaexporter.org
