On October 1, the dockers of the US East Coast hit the most vulnerable point of the world economy – they announced a mass strike over unsatisfactory wages and automation. It is the first strike in nearly half a century by dockers, who are the backbone of maritime transport and international trade. A single day of port shutdown can cause global chaos, where a relatively small group of workers in one country can shake the economic stability of the planet. A long period of stability in US seaports allowed world markets to function without significant disruption, but it has ended. The consequences of this strike can affect all sectors of the world economy: from the delay of goods to the increase in the prices of products and energy. Millions of people around the world may find themselves on the brink of a shortage of essential goods, and countries with developed imports and exports are at risk of economic slowdown.
History of dockers’ strikes
The history of dockers’ strikes in the US is not just a chronology of labor conflicts, but an example of how a group of workers in one country can affect the global world economy. Dockers are key players in the international trade system, and their strikes lead to chain reactions in various economic sectors. This is the reality when American dockers, those invisible heroes of world trade, decide to go on strike. The history of docker protests in the US is full of drama, with global ramifications that ripple far beyond American ports.
In 1934, dockers protested, demanding decent working conditions and the right to form a single trade union. It was a real revolution in the ports of the West Coast of the United States. The situation escalated to such an extent that blood was spilled on the streets of San Francisco. “Bloody Thursday” was the day when two dockers were killed in clashes with the police and became a symbol of the struggle for rights. But this strike was not in vain. After 83 days of struggle, the dockers won: employers were forced to recognize their union and agree to improved working conditions. This conflict became one of the most significant in the history of the labor movement in the United States.
After the Second World War, the United States was on the verge of economic recovery, but the dockers did not want to put up with low wages that remained at pre-war levels. In 1946, they announced a mass strike on both coasts — both on the East and on the West. They demanded higher wages because prices had risen and their pockets remained empty. The strike, though it lasted only a few weeks, was part of a general wave of post-war protests in the US, as workers across industries took to the streets to demand economic justice. The dockers won and got a raise, which became a symbol of their struggle for a better life.
Two years later, in 1948, the dockers rose again to fight, but this time their enemy was not only the port administration, but also machines. The question of automation scared thousands of workers: new technologies threatened to destroy their jobs. West Coast dockers have gone on strike for 95 days – nearly three months of port shutdowns and global shipping delays. They demanded guarantees to protect their jobs in the new era of mechanization. After difficult negotiations, a compromise was reached: jobs were saved, but automation did not stop. However, this strike secured for the dockers the right to fair working conditions even in the face of technological progress.
Let’s remember the year 1971. It was the first large-scale strike in nearly 50 years when US West Coast dockers decided to put everything on the line in a fight for their rights as port automation threatened to put them out of work. Their protest lasted 134 days, stopping the ports and turning many goods on ships into “floating warehouses”. Hundreds of ships remained unloaded, and it wasn’t just American companies that felt the blow. Delays in the supply of goods hit the whole world: from Europe to Asia. Automakers halted assembly lines, electronics were off the shelves, and markets began to experience shortages of everything from consumer goods to raw materials. This strike was a warning to the global economy: if US ports stop, the world begins to break.
The massive strike of dockers in 1977 became one of the largest in the history of US maritime trade. It engulfed ports on the East Coast and in the Gulf of Mexico, lasted 100 days, and had serious consequences for the nation’s economy and global trade. It was organized by the International Dockers Association (ILA), which represented the interests of thousands of workers. The main reason for the protest was disputes over working conditions, wage increases and pensions. The dockers demanded better compensation for their work, as well as social security guarantees. The issue of automation was already beginning to affect the industry, but the main focus of the strike was on working conditions and social benefits.
The consequences of the strike were significant for the US economy. Ports that played a key role in international trade were shut down, causing delays in the delivery of goods. Manufacturers and importers across the country felt the impact of this conflict, as much of the cargo could not be processed in time. The strike ended with the signing of a new collective agreement that satisfied the dockers’ demands for wages and pensions. Although automation was not yet the main issue of this strike, it gradually became a challenge for the industry in the following decades. Even after the conflict was resolved, the ports were operating at their limits and the world economy was still feeling the effects.
Dockers strike in 2024
On October 1, 2024, the US East Coast docks again were in the center of attention, announcing a mass strike that could become one of the biggest threats to modern global maritime trade in recent decades. Unsettled wages and port automation have led thousands of workers to picket, paralyzing major ports in Philadelphia, Houston and other key trading cities. If the strike lasts several weeks, it threatens to cause major disruptions in supply chains, which could cause shortages in stores and delays in the supply of essential products around the world.
The protest was the first mass strike by the International Shipping Association (ILA) since 1977, which could paralyze around 36 ports. Its consequences could be devastating for global trade. Thousands of containers of consumer goods, electronics and other critical products remain on ships instead of going to stores and warehouses. About 45,000 longshoremen, who are part of the ILA, are demanding higher wages and job security guarantees in light of automation, which threatens to replace human labor with machines.
Although negotiations between the union and the port companies continued until midnight, no agreement was reached. The main points of disagreement include higher wages and a total ban on port automation. Dockers, who have repeatedly become a key link in global logistics, are demanding a fair contract that would compensate for rising inflation and years of small raises.
Local ILA President Boyce Butler emphasized that automation puts thousands of families at risk:
“It’s not just about the machines that do our work. It’s about families losing their livelihoods. Companies have made billions during the pandemic, and we demand fair treatment for the people who were on the front lines.”
The ILA initially demanded a 77% wage increase over six years to compensate for inflation and a long period of minimum increases. The US Maritime Alliance, which represents port interests, offered a 50% raise, but that didn’t sit well with the union. The main demand remained a complete moratorium on automation, as this process directly affects thousands of docker jobs.
According to experts, the immediate impact of the strike on consumers can be avoided for the time being, as most retailers have prepared in advance and stockpiled goods for the holiday season. But if the strike drags on for several weeks, the consequences will be serious, especially in the midst of the New Year hype. Delivery delays will not only affect gifts and electronics, but also critical food items such as coffee beans, fruit and other perishable goods.
Products with a short shelf life, such as bananas, are especially vulnerable to such failures. According to the American Farm Bureau Federation, 3.8 million tons of bananas pass through East Coast ports annually, which is 75% of the total volume of the fruit in the United States. Any disruptions in supply can cause shortages in the market and a sharp rise in food prices. Bananas, like many other commodities, will be held hostage by this situation, which will inevitably affect American wallets as well as global food markets.
Consequences of the dockers’ strike for the Ukrainian and world economy
The dockers’ strike on the East Coast of the United States could become a real ticking time bomb for the global economy, able to paralyze shipping and strike many countries, including Ukraine. If ports on the East Coast and in the Gulf of Mexico remain blocked, it will cause a chain of delays for ships carrying billions of dollars worth of cargo. Maritime trade, already reeling from the effects of the pandemic and other economic upheavals, will come under even greater pressure. The main blow from the strike will fall on container transportation, because ports in the Gulf of Mexico handle up to half of all container cargo arriving in the United States. Blocked ports will mean colossal disruptions in logistics and delays in the supply of products not only for American consumers, but also for global markets.
If the strike continues for a long time, global economic losses could be catastrophic, reaching tens of billions of dollars. For example, according to Miter, the ports of New York and New Jersey could lose up to $641 million a day, and the port of Virginia could lose up to $600 million. These figures only underscore the scale of the potential impact on the US economy, which could take a significant hit to key supply chains.
It should be noted that the consequences of this strike will be felt not only in the USA, but also on all continents. Ships plying between the US and Europe will not be able to return in time for flights to Asia, blocking imports and exports for months ahead. According to Xeneta platform analysts, even a week-long port shutdown could cause delays in the schedule of vessels from Asia to the US until January 2025. If the strike drags on, it will be a global economic earthquake: prices will rise, goods will disappear from the shelves and companies will cut costs, affecting millions of jobs around the world.
Ukraine, whose economy is already suffering from the war, will not escape these consequences. The export of Ukrainian products to the USA through European ports and other international hubs may slow down significantly. This, in turn, will lead to delays in the flow of foreign currency into the country and reduce the income of agricultural and industrial enterprises, which are already facing major challenges due to hostilities. Many Ukrainian companies exporting goods will feel further pressure, as the US is an important trading partner, and any disruptions in logistics will worsen the situation in the domestic market. The strike could also make it difficult for Ukraine to import important goods, including industrial equipment used to rebuild infrastructure.
At the same time, according to economic analysts, losses to the US economy could reach from 3.8 to 4.5 billion dollars every day if the ports remain closed. Of course, some of these losses will be made up once work resumes, but extended shutdowns will lead to massive supply delays that will hit manufacturers and retailers. For example, importers of electronics, clothing and food will experience a shortage of goods, and consumers will experience an increase in prices.
As for the political implications, the strike comes weeks before the US presidential election and could affect the election campaign. Some business groups had hoped that President Joe Biden would step in and invoke the Taft-Hartley Act to suspend the strike for 80 days, but Biden, with strong ties to labor unions, decided to take his time. He said he expects the conflict to be resolved without his intervention, although pressure on the administration from major business associations is mounting.
With every day of the strike, the situation can only get more complicated, and the global consequences will not be long in coming. The world, which is already experiencing economic upheavals, may be on the verge of another crisis, where the Ukrainian economy will not be able to avoid painful blows
So, every strike by dockers in the US is like a blow to the invisible artery of global trade. They stop not only the ports, they start a chain reaction: supplies are disrupted, prices rise, delays in the production of goods begin. And this does not apply only to the USA. When the ports in Los Angeles or Oakland stop, Kyiv, Tokyo, and London will learn about it. The world has become too interconnected, and any disruption in its mechanisms, such as the dockers’ strike, causes consequences felt on every continent.
Oksana Ishchenko
