Prolonged port strike could mean higher prices for consumers

RALEIGH, N.C. (WTVD) -- Tuesday marked the official first day of a dockworkers' strike between the International Longshoreman's Association and the U.S. Maritime Alliance. Both sides are deadlocked in a contract dispute that has shuttered 14 ports ranging from Texas to New England.

Specifically, the ILA is asking for a $5 per hour wage increase and limits on automation. The USMX, meanwhile, has increased their offer to a 50% wage increase.

"Our current offer of a nearly 50% wage increase exceeds every other recent union settlement while addressing inflation, and recognizing the ILA's hard work to keep the global economy running," said USMX leaders in a statement. "We look forward to hearing from the Union about how we can return to the table and actually bargain, which is the only way to reach a resolution."

The strike is said to affect products en route to ports, as well as the export of products.

"That, I think, is the unnoticed potential bad impact if this goes on and on," said NC State University economics professor Michael Walden. "We can't get those things that we make here for sale in foreign countries, that can have a big impact."

Those products include sweet potatoes, soybeans, tobacco, pork, lumber products, poultry, and other items.

"I think the bottom line there is if there's a contract with a foreign country to import ... they may have already prepaid them," said Walden. "But my guess is if this goes on, they're not going to prepay (for product). So that's going to be less income in farmers and (agriculture) people's pockets."

The delay in getting goods into the country through U.S. ports and even exported could ultimately be passed along to consumers.

"There will be a deal. But not a quick deal. There will be a deal and that means it's going to be more costly to ship things," said Walden. "And who pays that ultimately? The company will pass that on to consumers."

In a statement, President Joe Biden said, "It's only fair that workers, who put themselves at risk during the pandemic to keep ports open, see a meaningful increase in their wages as well."

Meanwhile, in a statement to ABC11, the North Carolina Growers Association said, "NC farmers, who continue to endure significant increases in production costs in addition to this season's difficult weather extremes, are very concerned about the longshoremen strikes at our ports and the impact it will have on imported inputs and crop exports. A lengthy strike will increase inflation pressures at a time when American farmers and consumers are at the breaking point."