Time is running out for the International Longshoremen's Association (ILA) and the US Maritime Alliance (USMX)—a coalition of port operators and carriers—to form a new labor contract as the existing one expires at midnight. A no-deal scenario would mean thousands of longshoremen at three dozen facilities across 14 Gulf and East Coast ports would begin striking at 12:01 am EST. Tuesday would mark the beginning of a major supply chain storm (inflation surge) in a no-deal scenario.
Goldman analyst explained last week that a walkout by ILA members would jeopardize $5 billion in daily international trade coming into the Gulf and East Coast ports.
Goldman's Jordan Alliger told clients, "Upwards of $4.9bn per day is at risk in international trade along the East and Gulf coasts, along with the potential for supply chains to likely become less fluid due to emergent congestion, which in turn could result in a re-emergence of transport price inflation."
"The biggest wild card in the presidential election that nobody's talking about? The looming port strike that could shut down all East and Gulf Coast ports just 36 days before the election," Flexport CEO Ryan Petersen wrote on X earlier this month.
On Monday morning, with just a little over half the day left, a team of Goldman analysts led by Brooke Roach provided clients with the "current state of the supply chain and freight environment for the retail industry."
Here is the historic labor action example the analysts laid out:
The analysts then surveyed retailers about their freight exposure at US ports. In one instance, Dollar Tree warned that half its products pass through Gulf and East Coast ports.
Some retailers warn that supply chain snarls could spark chaos for them:
Another industry survey found which retailers will be the most flexible in an East Coast port strike environment.
Earlier this morning, when Biden was asked about "Yemen strikes," the president responded incoherently to reporters: "I've spoken to both sides. They gotta settle the strike. I'm supporting the collective bargaining effort. I think they'll settle the strike."
Dr. Jill has had enough.
What's embarrassing for the nation is that Democrats lied to the American people about the president's cognitive collapse. No wonder domestic and foreign policy is a mess.
Meanwhile...
Bro.
Isn't that your job?