MSC cargo vessel at the Port of Miami. Photo: Getty Images

The walkout involves about 45,000 members of the International Longshoremen’s Association (ILA) and is the first large-scale strike of this kind since 1977. The strike is expected to cause significant supply chain disruptions if it continues for an extended period.

USVI & wider Caribbean could be affected 

The U.S. Virgin Islands and the broader Caribbean region could feel the impact as the affected ports are crucial for importing essential goods like food, raw materials, and manufactured products. Prolonged delays may lead to shortages, particularly of perishable items like fruits and vegetables, which would drive up costs. In addition, many Caribbean islands depend on East Coast ports for exports, and a drawn-out strike could hinder local economies reliant on trade.

In addition to disrupting cargo shipments, the strike could result in delays for cruise ship schedules and cause backlogs at other ports, particularly on the U.S. West Coast. This would further complicate the flow of goods to the region. If the work stoppage persists, businesses in the Caribbean, including those in the Virgin Islands, could see higher operating costs due to increased shipping times and fees.

Despite progress in wage negotiations the previous day, the strike began shortly after the contract between the ILA and the U.S. Maritime Alliance expired at midnight. Workers in various locations, including the Port of Philadelphia and Port Houston, have set up picket lines to demand fair wages and job protections from automation, which they say threatens their livelihoods. The union is pushing for a 77% wage increase over six years, while port employers have proposed a 50% raise along with limits on automation.

Potential shortage of essential goods

Concerns are mounting about potential shortages of essential goods as the holiday season approaches. Perishable imports, such as bananas, are particularly vulnerable, as the affected ports handle about 75% of the nation's banana supply. Prolonged disruptions could result in traffic jams at West Coast ports, further affecting the national supply chain.

Experts estimate that the strike could cost the U.S. economy between $3.8 billion and $4.5 billion per day if it continues for several weeks.