The International Longshoreman's Association (ILA) and the United States Maritime Alliance (USMX) are at an impasse. Their current six-year contract expired at midnight Tuesday.
The ILA is asking for a 77% wage increase over the next six years and limits on automation, while the USMX was offering a 40% increase. That offer was increased to 50% Monday evening but no deal was struck by the deadline.
Dockworkers at ports from Maine to North Carolina to Texas began walking picket lines early Tuesday in the strike over wages and automation that could reignite inflation and cause shortages of goods if it goes on more than a few weeks.
The strike affecting 36 ports is the first by the union since 1977.
"The Ocean Carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA Longshore Workers an unacceptable wage package that we reject", the ILA said in a written statement on its website. "Meanwhile, ILA-dedicated longshore workers continue to be crippled by inflation due to USMX's unfair wage packages."
On Monday, the Wilmington port was open until 6 p.m. and agreed to allow for the unloading of material until 11:59 p.m.
"It's a trickle-down effect," said Home Accent Furnishings owner Tim Subelink. He and his wife have operated in Raleigh on Hillsborough Street for 10 years.
They source a lot of their inventory from shipments that come through Wilmington. They use a vendor from Virginia who receives products from Wilmington.
If there's a stoppage at the ports then the product will not flow to their vendor. In turn, eventually, the Subelinks would be affected.
"(I) pray they don't shut down," said Subelink.
The longer the stoppage continues, the larger the backlog of ships waiting to unload.
"The ships that are there today can't get out. There's ships coming in tomorrow that can't come in. On the 2nd, there's ships coming in. On Oct, 3, there's ships coming in. And they'll just have to start to anchor," he said.
Though there is no immediate effect on customers, Subelink said that's not a reason to believe everyone is in the clear.
"Again, it depends on how long the ports are closed, how much inventory is currently in stock. It could take a month before we actually see an issue," he said.
Economic experts predict the stoppage could cost the U.S. economy billions of dollars.
The Associated Press contributed.