Fight for 'respect, appreciation and fairness': Major strike by ILA shuts down 36 US ports

Facts & Figures - A gist

• 36 ports shut down

• 45,000 ILA members on strike

• $7.5 billion estimated weekly costs to the US economy

• 77% wage rise demand

• 50 years since US saw this large-scale a protest by USA

What is happening?

Thousands of dockworkers staged their walkout on Tuesday at midnight to hit the picket line, when their plans to strike a deal with port operators and ocean carriers failed after months-long effort.

As a consequence, about 45,000 members of the International Longshoremen’s Association’s (ILA) led to the shut down of about 36 sea ports from Maine to Texas. Among the impacted ports are Baltimore, Boston, South Carolina; Florida, Miami, New Orleans, New York/New Jersey, Philadelphia, Georgia, Delaware, among others. Moreover, the number of ships in queue in the anchorage has been rapidly increasing.

"The queue could easily grow to 100 by the end of the week as more containerships are on their way,” Global Director of Intelligence for Everstream Analytics Mirko Woitzik predicts.

Given that it's peak ocean season, with ongoing inflation, many are fearing the repercussions of the strike across the US East Coat, concerned that it will impact the trade flow across US. Economists are hinting at heavy costs to the economy, saying the strike could cost up to $7.5 billion per week, as reported by BBC. The timing is worse, many are ruminating, given the damage caused by hurricane Helene across many US towns.

What are the demands?

"Our members feel underappreciated, especially given the sacrifices they made during the pandemic, keeping ports open and the economy moving."

This came after ILA's demands of 77% wage increase over six years and ban on automation weren't heard. The labor dispute with the United States Maritime Alliance (USMX) and ILA ensued after the expiry of their six-year contract.

ILA turned down a late Monday offer that involved a 50% wage increase over six years, which was an improvement from an earlier proposal of 40%. Alongside this, there were some other benefits on the table. Reportedly, the ILA is pushing for a significant hike in the base hourly rate for its approximately 45,000 members, aiming to raise it from $39 to $69—essentially a 77% increase—before they’ll agree to start negotiations with maritime employers.

“We are prepared to fight as long as necessary, to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve... USMX owns this strike now. They now must meet our demands for this strike to end," ILA head Harold Daggett stated on Tuesday.

This is the first such coast-wide protest by ILA in the last 50 years.