The container ship backlog outside major U.S. ports continued to grow on Thursday, as the International Longshoremen’s Association (ILA) strike entered its third day. The strike, which began on Sunday, has brought container traffic to a halt at 14 of the country’s busiest ports, including those in New York, Georgia, and Texas.
According to Everstream Analytics, 45 container vessels were anchored outside the strike-stricken East Coast and Gulf Coast ports by Wednesday, up from just three before the strike began. Jena Santoro of Everstream noted that many ships appear to be waiting for a resolution to the strike rather than diverting to other ports.
The ILA, which represents approximately 85,000 longshoremen, is seeking a significant pay raise and commitments to halt port automation projects that it believes will lead to job losses. The United States Maritime Alliance (USMX) employer group had offered a 50 percent pay bump, but the ILA deemed it insufficient.
USMX stated on Wednesday that it remains committed to bargaining in good faith to address the ILA’s demands and its own concerns. However, no negotiations were scheduled between the two parties.
The strike is estimated to cost the U.S. economy $5 billion per day, as the impasse over wages and automation continues. The ports affected by the strike handle more than a third of the country’s imports and exports.
The ILA’s strike is its first major stoppage since 1977, and it has brought attention to the union’s concerns about the impact of automation on jobs. The White House has pressured port owners to increase their pay offer to the ILA in an effort to reach a deal.
As the strike continues, the backlog of container ships is expected to grow, leading to shortages of various goods, including bananas and auto parts.
