Port Strike Ends After 3 Days: Retailers, Politicians Breathe Sigh Of Relief

Retailers and politicians reacted to the International Longshoremen's Association (ILA) and U.S. Maritime Alliance’s (USMX) tentative deal to end the ongoing port strike.

What Happened: East Coast dockworkers went on strike Tuesday following their contract lapse with port employers.

The dockworkers sought a 77% pay increase over the next six years and workplace protections for automation of port practices.

Several experts thought a prolonged strike could seriously harm U.S. supply chains, though they pegged the likelihood of a strike continuing for more than a few days to be low.

The strike ended Thursday night following the USMX’s offer to increase pay by 62%. The contract was extended to Jan. 15, giving both sides time to negotiate on other issues such as port automation.

Reporting by Reuters attributed the success of negotiations to White House economic adviser Lael Brainard and Acting Secretary of Labor Julie Su.

Reactions: The end of the strike received a flurry of reactions, including from National Retail Federation President Michael Shay.

“The decision to end the current strike and allow the East and Gulf coast ports to reopen is good news for the nation's economy,” Shay said.

“It is critically important that the International Longshoremen's Association and U.S. Maritime Alliance work diligently and in good faith to reach a fair, final agreement before the extension expires. The sooner they reach a deal, the better for all American families."

A Bank of America analyst also expressed relief that the strike ended promptly while noting future considerations.

“We see limited impact from the strike, with <1% incremental global congestion build, and with China export volumes muted during China’s October Golden Week. As such, pressure should build on container spot rates, per our BofA Asian Transport analyst Nathan Gee,” the analyst said.

“With pre-shipping done, a quick strike, and inventories built, we see a muted backdrop until demand accelerates, which should remain an overhang on U.S. transport stocks.”

In a post on X, President Joe Biden applauded the end of the strike.

“Collective bargaining works,” Biden wrote. The Scranton, Pennsylvania, native positioned himself as firmly pro-union during his presidency.

His senate colleague, progressive Bernie Sanders (I-VT), also commented on the agreement between the ILA and USMX.

“I congratulate the 50,000 port workers who went on strike against the outrageous corporate greed of the shipping industry and won an historic increase in wages,” Sanders wrote. “Billionaires in the shipping industry must not be allowed to get even richer by replacing port workers with robots.”

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