The US could have seen shortages and higher retail prices if the dockworkers' strike had dragged on

NEW YORK (AP) — U.S. ports from Maine to Texas closed this week as unions representing about 45,000 dockworkers went on strike For the first time since 1977.

Workers began walking picket lines near ports along the East and Gulf coasts early Tuesday morning.

The shutdown, which lasted more than a few weeks, was likely to drive up prices and create product shortages as the holiday shopping season — along with a tough presidential election — approaches.

But the union representing striking US dockworkers, the International Longshoremen's Association, An agreement was reached on Thursday The strike was suspended until January 15 to allow time to negotiate a new contract. Union members will begin working immediately until at least January.

What are the problems with the dockworkers strike?

The union is demanding significantly higher wages and a total ban Automation of cranes, gates and container-moving trucks which are used in loading or unloading cargo at 36 US ports. These ports handle about half of the countries' cargo from ships.

The agreement between the ILA and the US Maritime Alliance, which represents the ports, expired on Tuesday

The opening demand of the union was a A 77% salary increase over the six-year life of the contractDaggett says that will make up for inflation and smaller increases over the year. ILA members make a base salary of about $81,000 per year, but some can earn more than $200,000 annually, including substantial overtime.

On Monday, before workers hit the picket line, the union said it had increased its offer by 50% over six years and it pledged to keep automation restrictions from the old contract. The coalition also said their offer tripled employer contributions to retirement plans and strengthened health care options.

Which ports have been damaged?

Any port can handle any type of cargo, some ports specialize in handling cargo for a particular industry. Ports affected by the shutdown include Baltimore and Brunswick, Georgia, the top two busiest auto ports; Philadelphia, which prioritizes fruits and vegetables; and New Orleans, which handles mainly from South America and Southeast Asia, various chemicals from Mexico and Northern Europe, and wood products from Asia and South America.

Other major ports affected include Boston; New York/New Jersey; Norfolk, Virginia; Wilmington, North Carolina; Charleston, South Carolina; Savannah, Georgia; Tampa, Florida; Mobile, Alabama; and Houston.

Can the government intervene?

If a strike is deemed a threat to US economic health, President Joe Biden may, under 1947 Taft-Hartley ActA court order was sought for one 80 days cooling off period. Then the strike would have been suspended.

But during an exchange with reporters on Sunday, Biden said “no” when asked if he planned to intervene.

“Because it's collective bargaining, I don't believe in Taft-Hartley,” Biden said.

How are states responding?

Florida Gov. Ron DeSantis said he would order the Florida National Guard and Florida State Guard to “maintain order” at the state's ports and possibly help resume operations to help residents and businesses recover from Hurricane Helen.

“It has the potential to really disrupt hurricane recovery and harm people who are victims of the storm,” DeSantis said at a news conference Thursday. He spoke before news broke that the union had agreed to suspend its walkout.

Maryland Gov. Wes Moore, Massachusetts Gov. Maura Haley, New Jersey Gov. Phil Murphy and New York Gov. Kathy Hochul issued a joint statement saying they are monitoring the situation for price gouging incidents.

How will it affect consumers?

With the strike suspended, consumers likely won't notice any significant shortages or price hikes. Had the stoppage lasted for more than a month, it would have been a different story depending on what you were shopping for. Most holiday retail products have already arrived from overseas, so there is a buffer. Everything from fruits and vegetables to cars could rise in price, at least temporarily, if it were to drag on.

That would have been unwelcome news after snarled supply chains pushed up prices late in the pandemic and could be politically damaging with Election Day nearly a month away.

The 'sell-by' clock never stops ticking

Containers loaded with highly perishable bananas were stuck at some ports.

Before announcing the moratorium, Agriculture Secretary Tom Vilsack noted that limiting the duration of the strike was key to preventing shortages and high prices.

Made a business plan

Since Major supply chain disruptions in 2021Retailers have adapted to supply chain disruptors as the new norm, said Rick Haas, owner of a mini-chain of Patina gift shops in and around the Twin Cities, Minnesota.

“The best approach for Patina is to secure orders early and have the products in our warehouse and back room to ensure we are in stock with the original products,” says Haas.

Still, housing these products over a long period of time could have an inflationary effect as retailers have to recover, or absorb, those storage costs.

Jay Foreman, CEO of Basic Fun, Boca Raton, Florida, maker of Care Bears and Lincoln Logs, has already moved all of the toy companies. Run the container East coast to west coast away from ports, primarily Los Angeles and Long Beach. That also comes with a cost.

The strategy added 10% to 20% in additional costs that his company would have to absorb because the basic Fun price is locked in to retailers for the next 10 months. But Foreman will consider raising prices in the second half of 2025 if the strike drags on.

Daniel Vasquez, who owns Dynamic Auto Movers, an import-export specialty company in Miami, has increased inventory in anticipation of a strike, especially vehicles that take longer to ship.

He also stopped relying on a single port or shipping partner and expanded his ties to smaller ports and shipping companies that could avoid congestion. the area.

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AP writer Brendan Farrington in Tallahassee, Florida; Stephen Groves in Dover, Delaware; Anthony Izaguirre of Albany, New York; Tom Krisher in Detroit; and Colin Long in Washington contributed to this report.