BREAKING: Dockworkers from Maine to Texas go on strike as US economy faces losses of billions per day

Early Tuesday morning, dockworkers at ports across the US began a strike over wages and automation that could cause supply shortages and increase inflation.

According to the Associated Press, the contract between the International Longshoremen’s Association and 36 ports from Maine to Texas. The strike went forward despite reported progress in negotiations and is the first one by the union since 1977.

The union opened negotiations with an offer for a 77 percent pay increase over the six-year contract. Union President Harold Daggett said the increase was necessary to compensate for years of minor increases and inflation.

Monday evening, the US Maritime Alliance, which represents the ports, increased their offer to 50 percent raises over six years, and promised to maintain automation limits that were in the previous even though the union is demanding a complete ban on automation.

According to the alliance, the offer tripled employer contributions to retirement plans and expanded health care options.

Ports already began shutting down operations on Monday. Experts told the AP that US consumers won’t see an immediate impact because retailers are already stocked by could see delays on holiday gift items depending how long the strike lasts. An extended strike could cause supply shortages and higher prices.

According to the outlet, the strike will have an immediate impact on perishable imports like produce. The strike could also create traffic jams of vehicles and goods at ports.  

Founder of supply chain management and logistics firm Pro3PL Jay Dhokia told the outlet, “If the strikes go ahead, they will cause enormous delays across the supply chain, a ripple effect which will no doubt roll into 2025 and cause chaos across the industry.”

JP Morgan estimated that the strike could potentially cost the US economy $3.8 billion to $4.5 billion per day.

On Sunday, President Joe Biden said he did not plan to intervene in a potential work stoppage when asked by reporters. According to the AP, Biden could temporarily end the strike using the Taft-Hartley Act, which would enable him to get an 80-day cooling off period between the parties.

Earlier in the day, the Biden-Harris administration's Secretary of Commerce Gina Raimondo said during an interview on CNBC that she wasn't focused on the potential dockworker strike despite the possibility that it could cripple supply chains and increase the costs of goods for Americans.