The clock is ticking on a major port strike

~45,000 dock workers on the East and Gulf Coasts are preparing to walk off the job at midnight, should an agreement not be reached between their union and shipping companies prior. A labor stoppage would affect 36 ports that collectively handle ~60% of US shipping traffic.

Oceans apart: The US Maritime Alliance, which represents shippers and ports, and the dock worker’s union haven’t met since June. And while the two sides have reportedly been in communication, as of Sunday evening, no official talks are scheduled.

• The sticking points are wages and plans to automate certain container operations.

Decisions, decisions

The US government could intervene to speed up negotiations and avert/end a strike, leaving the Biden admin in an interesting position.

Per the AP: Both President Biden and VP Kamala Harris, the Democratic presidential nominee, have courted union support and don’t want to be seen as pressuring dock workers to reach a settlement. But if an extended strike were to cause shortages of consumer goods or fuel high inflation, it could cost Harris votes in the November election.

📸 Big picture: A strike would cost the US economy ~$5 billion/day (~6% of the national economy), according to JPMorgan analysts. Shipments could be diverted, but neither West Coast ports or the US rail system could handle the extra volume, according to experts.