Short Port Strike

Originally published Oct. 4, 2024

Sports fans know that a lot can change in the fourth quarter of a game. So too for the U.S. economy, as a substantial labor action commenced the minute that calendars turned to the fourth quarter of 2024.

Roughly 45,000 members of the International Longshoremen’s Association union conducted a brief strike this week. These are the workers who move cargo between ships and ground transportation. The 14 affected ports, spanning from Texas to New England, account for 19% of the nation’s imports and 10% of exports, by value. The workers' primary demand was protecting their jobs against automation, along with higher wages.

One demand proved easier than the other. An offer by the U.S. Maritime Alliance of a graduated 62% wage increase over five years was enough to end the strike after three days. But the deal only runs through January 15 of next year. Negotiations will continue on the more thorny issue of protecting workers’ jobs against automation. This trend is inexorable and not unique to the ports; strident demands may be in vain.

While short, the port strike showed that supply chain friction can still arise.