A massive East Coast dockworker strike could crunch early holiday shipments

Your Minion costume may be delayed… A looming dockworkers’ strike at 36 ports from Maine to Texas could shut down trade hubs that account for 60% of US shipping traffic (yikes). If port employers and workers don’t reach a contract deal by next week, 45K members of the International Longshoremen’s Association could stage a walkout. It’s not looking good as negotiations haven’t even been scheduled. A strike would mark the ILA’s first in nearly a half century — and could cost the US economy up to $7.5B/week.

• Uncontained: The strike-threatened ports include half of the 10 busiest in North America. Fun fact: two-thirds of bananas arrive at East and Gulf Coast ports.

• Freight’s rate: The ILA wants a 77% wage hike over six years — more than double the 32% raise West Coast dockworkers won last year — arguing that shipping cos have raked in huge profits.

• Knotty: Under federal law POTUS could end a strike, but the Biden admin has said it’s not considering the move.

Going full throttle… Shippers are racing to deliver before a potential work stoppage, which would threaten their holiday-shopping inventory. $34B worth of goods is on its way to the affected ports. And last month imports at US shipping hubs were up 21% from a year earlier. Many shipments are being diverted to West Coast ports, leaving some with their highest import levels ever. Still, importers worry that diverting too much cargo could cause traffic jams.

• Precious cargo: The cost to ship a 40-foot container from Shanghai to NYC hit $10K in July (more than double February’s rate).