BATON ROUGE, LA (KPEL News) – A major labor strike began Tuesday at ports from the East Coast to the Gulf Coast that could have a significant economic impact on Louisiana.

The longshoremen’s strike means it’s much harder for imported goods to get into America’s heartland. As a result, we may observe an increase in the prices of some goods, including essential ones.

The International Longshoremen’s Association (ILA) was negotiating with the group representing ports along the East Coast and the Gulf Coast, the United States Maritime Alliance (USMX). However, these talks broke down over the summer. On Monday evening, a last attempt was made to continue the talks, but no agreement could be reached.

There are two key issues at play. The first is excessive pay, with longshoremen demanding a 77 percent pay rise spread over six years to help workers cope with rising inflation. They also wanted an agreement that would prevent full automation from taking over crane operations in ports.

ILA president Harold Daggett said the union was “ready to fight as long as it takes,” indicating it could be a long fight.

Impact on Louisiana ports

According to the Louisiana Association of Business and Industry (LABI), the strike directly affects two major ports in Louisiana – Baton Rouge and New Orleans.

LABI called the strike “disheartening.”

“Today’s strike by members of the International Longshoremen’s Association is disheartening and embarrassing, especially for Louisiana, because we are a state that plays a significant role in the distribution of the nation’s exports, exporting nearly $53 billion in goods in 2023 – everything from coffee to chemical products. This impacts the Port of Baton Rouge and the Port of New Orleans – key stops for domestic and international trade.

“In addition to the financial blow of this strike, it will cripple an already fragile supply chain that is still recovering from the pandemic. Despite the precedent and legal remedies that make this possible, the Biden administration’s refusal to intervene in deal negotiations is also deeply frustrating. The intervention would prevent disruptions at the 14 ports involved while talks between the parties continue. Thanks to the president’s actions, the same scenario we find ourselves in could have been avoided.

“While a work stoppage at any time is unacceptable, a strike just before the holidays could be a disaster for Louisiana businesses, manufacturers and consumers.”

Economic impact

The short version? Many experts are concerned about inflation and how a strike could force prices to rise.

“Every day of inactivity where a ship does not come into port costs money, sometimes a lot of it,” Stamatis Tsantanis, president and CEO of shippers Seanergy Maritime and United Maritime, said in a statement. “That ultimately gets passed on to consumers.”

The type of inflation that results can last for months.

The Biden administration, which has been sensitive to inflation issues, said it would not directly interfere in the negotiations. However, the continuation of the talks is very encouraging.