Port workers on America’s east coast went on strike on Tuesday. Talks between the dockers and the United States Maritime Alliance, which represents terminals and carriers, broke down in June. The International Longshoremen’s Association, the union representing port workers, fears port automation and wants a wage increase of nearly 80%. The strike will shut five of the ten busiest ports in North America, from Texas to Maine. It will disrupt the delivery of billions of dollars’ worth of consumer goods during peak shipping season. The value of containerised imports at the 36 ports amounted to $588bn last year. Companies have been preparing for months for a possible shutdown. A study found that inventory
held by American retailers is around $18bn higher than would be expected on current economic growth rates. That has caused congestion, and re-routed trade to America’s west coast. Considerable damage has already been done.
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