Port workers strike fear in consumers and Dems

The heavily integrated nature of the US and Canadian economies means a strike by 45,000 members of the International Longshoreman’s Association – involving workers at 36 ports along the East and Gulf coasts – is being watched closely by politicians south and north of the border.

President Joe Biden has thus far refused to leverage the Taft-Hartley Act to intervene in the dispute, which impacts roughly half of US sea-borne imports, and more than half of the country’s containerized exports. That means supplies ranging from seafood and electronics to fruits and car parts are at risk. Biden’s facing increasing pressure from Democrats who fear that such a massive economic impact could spell trouble for them come Election Day.

North of the border, Canadian leaders are also worried about possible shortages, ranging from bananas to a lack of car parts to keep the auto industry moving. Now, the US strike has been compounded by a 72-hour work stoppage at the Port of Montreal, Canada’s second largest port, over wages and conditions. Similarly, the ILA wants a new agreement over salaries and limits on the use of automation.

Business groups have said that a three-day strike will result in a 15-day delay in unloading containers, which means much of the fresh produce being shipped through the East Coast ports will have no market value.

Canada’s auto parts sector says it will run out of inventory of imported components after a week or two. Since US$2.7 billion of goods and services move across the border every day, consumers can expect rising prices and a shortage of manufactured imports if the strike continues.