
Photo:Librado Romero/The New York Times
Update: The port strike has been averted for now with a 30 day contract extension.
In early December we posted about the end of the eight day West Coast dock strike that shut down 10 of the port’s 14 container terminals in the port of Los Angeles/Long Beach, in one of the busiest traffic seasons of the year. Now the US is facing another dock strike, this time on the East and Gulf coasts, which could shut down 15 ports from Massachusetts to Texas. If an agreement is not reached between the International Longshoremen’s Association (ILA) and the ports by December 30th, the US could face its first coastwide strike since 1977.
While the media has focused on the upcoming “fiscal cliff,” the impact of tax and budget negotiations in Washington, the shutting down of containerized cargo on the East and Gulf coasts could be a “container cliff” with a major impact on the US economy.