After talks for a new labor contract fell down over salaries, U.S. East Coast and Gulf Coast dockworkers embarked on their first significant strike in almost 50 years, blocking the flow of about half of the nation's shipping.
Analysts warn that the disruption caused by the strike hinders everything from food to car exports and would cost the economy billions of dollars every day.
The ILA's (The International Longshoremen's Association union) leader, Harold Daggett said on Tuesday; We are prepared to fight as long as necessary, to stay out on strike for whatever period of time it takes, to get the wages and protections against automation.
According to analysts the strike could cost the US economy roughly $5 billion a day!
With the holiday season getting close, retailers who account for about half of all container shipping volume have been busy putting backup plans into place.
In an attempt to avoid any interruptions from the strike, several of the major businesses rushed in Halloween and Christmas stock early, which resulted in additional expenses for shipping and storage.
Information derived and inspired from: Reuters
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