Port of Baltimore dockworkers strike could devastate consumer supply chain
BALTIMORE -- A strike of dockworkers across the U.S. East and Gulf coasts could devastate the nation's consumer supply chain, including at the Port of Baltimore.
U.S. ports from Maine to Texas officially went on strike when the International Longshoremen's Association, representing 25,000 dockworkers at 14 ports that handle roughly half the nation's cargo from ships, failed to reach a labor agreement by midnight on Tuesday, Oct. 1.
The union demands wage hikes and a ban on the use of automated cranes, gates and container-moving trucks in unloading or loading freight at the ports. This is the first national longshoremen's strike in the U.S. since 1977.
"We're gonna see things go out of stock, and or, prices go up because when imports are delayed there's a cost incurred, ships are going to be sitting, containers won't be unloaded, fees will add up and companies will take on some of that burden," said Geoffrey Milsom, adjunct professor at the University of Maryland's Smith School of Business.
Price hikes during the holidays
Work at the Port of Baltimore has come to a standstill after negotiations with the U.S. Maritime Alliance fell through.
The repercussions of a strike would be massive, not just for Baltimore, but for the entire Eastern seaboard, including car parts to grocery store items, which could skyrocket prices as inventory runs low.
With upcoming holidays, this is an important season for imported goods to get into distribution networks. With a prolonged strike, consumers will feel the price hikes.
"This is a really important season for imported goods to get into distribution networks," Milsom said. "Those delays are going to impact prices in and availability of goods we need or want on a regular basis."
Port of Baltimore's impact
Economists warn a strike could have a catastrophic impact on the economy.
"There's a reason why this is critical to the economic health of Baltimore and there's a reason we're going to start feeling the impact pretty quickly if this strike goes through," said JP Krahel, Professor of Accounting at Loyola Maryland.
Krahel says that every year, the Port of Baltimore alone supports thousands of local jobs and brings in billions of dollars worth of goods, especially car parts and produce.
Although a short-term strike would not cause a major disruption, Krahel says a prolonged strike could disrupt more than half of the U.S. shipping traffic.
"We're already starting to see people shift where they're sending goods, and the West Coast is benefiting as the East Coast is losing out on that," Krahel said.
Still recovering from Key Bridge collapse
Dockworkers at the Port of Baltimore lost wages because of the port's closure following the Francis Scott Key Bridge collapse last March. The port will once again see production come to a halt.
East Coast and Gulf Coast ports handle roughly 43% of all U.S. imports and bring in billions of dollars worth of consumer goods, ranging from car parts, to produce and pharmaceutical drugs. A strike could also mean higher shipping costs and prices.
"In terms of a strike, which we hope to avoid, everyone starts back at zero," said Baltimore longshoreman Ryan Hale.
Some of the longshoremen told WJZ they were prepared to strike but were nervous because they don't know when their next paycheck will come.
Alonzo Key said the dockworkers want to be compensated appropriately for the dangerous work they do.
Union workers at ports on the East Coast and Gulf Coast earn a base wage of $39 an hour after six years on the job. That is significantly less than their unionized West Coast peers, who make $54.85 an hour — a rate that will increase to $60.85 in 2027, excluding overtime and benefits, according to CBS News.
"There are no second chances at the Port of Baltimore," Key said. "It's an extremely dangerous job."
"Implore both sides to come together"
Although the Maryland Port of Administration is not directly involved in the negotiations, officials are calling for both sides to come to an agreement.
"We implore both sides to come together and negotiate an agreement that properly compensates the men and women of the ILA while maintaining cost effective and efficient cargo flows," the Maryland Port of Administration said in a statement.
