The ILA strike, the first since 1977, is causing concern for businesses in all sectors of the economy, with analysts predicting billions in losses.
Dockers on the East and South coasts of the United States went on strike on Tuesday, October 1, the first major work stoppage in nearly 50 years. About half of the country’s shipping has stopped, Reuters reports.
The strike blocked everything from food to cars at dozens of ports from Maine to Texas. Analysts estimate it will cost the economy billions of dollars every day, threatening to free up jobs and increase inflation.
The International Longshoremen’s Association (ILA) union has reached an agreement on a new six-year contract with the employer group United States Maritime Alliance (USMX) before the September 30 midnight deadline.
On Tuesday, the ILA said it halted all ports from Maine to Texas at 00:01 local time (0401 GMT) and rejected the USMX’s latest proposal submitted on Monday, noting that the proposal was “inadequate which meets the demands of the union.” a new contract may be approved.”
The ILA strike, the first since 1977, is causing concern for businesses in all sectors of the economy that rely on shipping to export goods or receive critical imports. The strike affects 36 ports that handle a wide range of containerized goods, from bananas to clothes and cars.
“The strike will run and continue for five to seven days until the government intervenes… At the same time, its consequences will be felt in the trade networks of both Europe and Asia until at least January-February, ” Peter said Sand, chief analyst at ocean freight pricing platform Xeneta.
He also noted that freight rates on transatlantic routes have now increased by nearly 20%.
Remember that workers at the Boeing plant on the west coast of the United States went on strike.
Earlier, Boeing agreed with the union to increase workers’ wages by 25% to avoid a general strike on September 13.
Source: korrespondent
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