U.S. companies that rely on East and Gulf Coast seaports have been importing early, shifting goods to the West Coast, and even putting cargo on pricey flights to hedge against a threatened Oct. 1 strike that could jam supply chains and reignite inflation ahead of the U.S. presidential election.
“This is just another headache after everything else we’ve been dealing with,” said Kenneth Sanchez, CEO of Chesapeake Specialty Products, which sends goods like metallic abrasives and foundry sand additives used to make engine blocks and transmissions to customers around the world.
His main port is in Baltimore, one of three dozen covered by an expiring contract between the International Longshoremen’s Association (ILA) union representing 45,000 port workers and the United States Maritime Alliance employer group, whose renewal talks are at an impasse over pay.
The threatened walkout would come just five weeks before a presidential election between Democratic Vice President Kamala Harris and Republican former President Donald Trump that is likely to turn on pocketbook issues.
A prolonged strike, alongside an ongoing strike by 30,000 machinists at Boeing that has already started to ripple through the aircraft maker’s supplier network, could put a dent in the U.S. job market next month at a critical moment. Economists at Oxford Economics last week estimated the two labor actions could reduce payrolls growth by 100,000 jobs if they stretch into mid-October.
Read more at Reuters.com
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