The U.S. is facing a potential crisis as the International Longshoremen’s Association (ILA), which represents about 85,000 maritime workers, prepares for a possible strike.
With their contract expiring on October 1, 2024, the union may shut down 36 ports along the Eastern Seaboard and Gulf Coast, creating ripple effects throughout the economy.
Gregory D. DeYong, an associate professor of operations management at Southern Illinois University Carbondale, warns that such a strike could severely disrupt the U.S. supply chain, recalling the challenges of the pandemic era.
Nearly half of the country’s imports would be left without an entry point, which could delay billions of dollars worth of goods.
“The U.S. imports approximately $3 trillion in goods each year,” DeYong noted, “so the scale of this potential disruption would be truly staggering.”
A strike could also affect exports, particularly to Europe, worsening economic fallout globally.
Analysts from JPMorgan estimate that the economic toll could reach $5 billion in losses per day during the work stoppage.
The extent of the damage would depend on the length of the strike, but even a short disruption would cause supply chain bottlenecks in industries reliant on foreign imports.
The ILA's contract is set to expire on October 1, 2024, and a strike could follow shortly thereafter.
