The Blubber

A labor strike that could close six out of ten of the busiest ports in the U.S. just weeks before the presidential election appears increasingly probable.

Negotiations over a labor contract for key trade hubs from Boston to Houston have stalled since June when the dockworker union halted high-level wage discussions with the United States Maritime Alliance, which represents ocean carriers and terminal operators.

The International Longshoremen’s Association (ILA) has announced it will present its final contract demands to union delegates at a meeting on September 4-5 and discuss strike plans if an agreement isn’t reached by the September 30 deadline.

“With less than 30 days remaining before the end of our current Master Contract when these meetings occur, we need to prepare our locals and ILA members for a potential strike starting October 1,” ILA President Harold Daggett said in a statement on Saturday. The USMX declined to comment.

Global maritime trade is already under pressure as container carriers navigate attacks by Houthis in the Red Sea and face potential trade tariffs, which are prompting importers to rush deliveries before trade conflicts escalate.

Even the mere threat of a port walkout can disrupt operations as shippers seek alternative routes for imports and exports. West Coast ports lost market share during an extended round of contract negotiations with dockworkers that concluded with a six-year agreement announced last summer.

The ILA is seeking wage increases to offset inflation and a share of the substantial profits earned by ocean carriers during the pandemic. The union is asking for more than the 32% raise achieved by West Coast dockworkers last summer, and the two sides remain far apart on wage increase terms, according to sources familiar with the negotiations.