Longshoremen's strike at the Port of Baltimore could destroy the consumer supply chain

BALTIMORE – A strike by Longshoremen on the East and Gulf Coasts of the United States could devastate the nation's consumer supply chain, including at the Port of Baltimore.

U.S. ports from Maine to Texas officially went on strike when the International Longshoremen's Association, which represents 25,000 longshoremen at 14 ports that handle about half of the nation's cargo from ships, failed to reach an agreement at midnight on Tuesday, Oct. 1 about the working conditions.

The union is calling for wage increases and a ban on the use of automated cranes, gates and container transporters when unloading and loading cargo at the ports. This is the first nationwide longshore workers' strike in the United States since 1977.

“We will see inventories sell out and/or prices rise because when imports are delayed, costs are incurred, ships are stranded, containers are not unloaded, fees add up and companies pay some of that burden wear,” said Geoffrey Milsom, an associate professor at the University of Maryland Smith School of Business.

Price increases during the holidays

Work at the Port of Baltimore has come to a standstill after negotiations with the US Maritime Alliance failed.

The impact of a strike would be huge, not just for Baltimore but for the entire East Coast, from auto parts to grocery items, which could send prices skyrocketing as inventories run out.

With the holidays approaching, this is an important time of year for imported goods to enter distribution networks. If the strike is prolonged, consumers will feel the price increases.

“This is a really important season for imported goods to get into distribution networks,” Milsom said. “These delays will impact the prices and availability of the goods we need or want on a regular basis.”

Impact of the Port of Baltimore

Economists warn that a strike could have catastrophic effects on the economy.

“There's a reason why this is critical to the economic health of Baltimore, and there's a reason why if this strike goes through, we're going to feel the impact pretty quickly,” said JP Krahel, a professor of accounting at Loyola Maryland.

Krahel says the Port of Baltimore alone supports thousands of local jobs and brings in billions of dollars' worth of goods each year, particularly auto parts and products.

Although a short-term strike would not cause major disruption, a longer strike could disrupt more than half of U.S. shipping traffic, according to Krahel.

“We're already seeing people moving their goods there, and the West Coast is benefiting, while the East Coast is losing out,” Krahel said.

Still recovering from Key Bridge collapse

Longshoremen at the Port of Baltimore Wages were lost due to the port's closure following the collapse of the Francis Scott Key Bridge last March. There will be another production stop in the port.

East and Gulf Coast ports handle about 43% of all U.S. imports, bringing in billions of dollars' worth of consumer goods, from auto parts to produce and pharmaceuticals. A strike could also lead to higher shipping costs and prices.

“As far as a strike, which we hope to avoid, everyone is starting from scratch,” said Baltimore longshoreman Ryan Hale.

Some of the longshoremen told WJZ that they were ready to strike but were nervous because they didn't know when their next paycheck would come.

Alonzo Key said dockworkers want to be fairly compensated for the dangerous work they do.

Union workers at ports on the East and Gulf Coasts earn a base wage of $39 an hour after six years on the job. That's significantly less than their unionized counterparts on the West Coast, who earn $54.85 an hour — a rate that will rise to $60.85 in 2027, excluding overtime and benefits. according to CBS News.

“There are no second chances at the Port of Baltimore,” Key said. “It’s an extremely dangerous job.”

“Ask both sides to come together.”

Although the Maryland Port of Administration is not directly involved in the negotiations, officials are calling for both sides to reach an agreement.

“We urge both sides to come together and negotiate an agreement that adequately compensates the men and women of the ILA while maintaining cost-effective and efficient cargo flows,” the Maryland Port of Administration said in a statement.