Experts say the International Longshoremen’s Association (ILA) has more clout in the negotiations because its actions could close important shipping routes with no practical alternative. While lower inventories have helped many companies avoid price spikes, concerns about delays in holiday shipments remain. For example, companies have already experienced delays, with some having to resort to more expensive air freight. Port authorities say dozens of ships are expected to arrive in New York and New Jersey, and are confident that the backlog will be cleared quickly. However, experts warn that the strike and recent attacks on shipping in the Red Sea could exacerbate market tensions.
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In addition to the fact that longshoremen earn significantly more than their counterparts in other industries, experts say that wage increases could be reflected in port costs and, therefore, in prices for end consumers. A key question remains whether a final agreement can be reached by mid-January, as technology and job protections are a major topic of negotiations. The parties are still far from agreeing on automation within ports, which could create additional tensions in the future.