45,000 dock workers have gone on strike along the US coast after employers and unions failed to reach an agreement.
It is the largest strike in almost 50 years – and could result in major consequences for global trade.
– If we are talking weeks, it will affect container traffic globally. Also in Europe and in Sweden, says Daniel Harlid, credit analyst at the rating company Moody’s.
Container chaos now threatens 36 ports along the US East and Gulf coasts after 45,000 dock workers went on strike. The night before today Swedish time, the agreement expired and the parties have not agreed on the salary and automation issues that have been put forward.
The strike is the largest at US ports since 1977.
– It is quite dramatic. This means that the ports are more or less at a standstill and that they do not handle any goods at all that arrive on container ships, says Daniel Harlid, credit analyst at the rating company Moody’s.
Risk of major consequences on world trade
The combat measures have been aimed particularly at container shipping where, among other things, cars and car parts are affected. In an initial stage, the effects of the strike will be felt most in the United States, according to Daniel Harlid.
– The biggest effect is felt in the USA. Container ships will not be able to load or unload goods and this means that the goods that are supposed to enter the US will not enter.
The impact is not believed to be as great as after covid, which led to, among other things, a shortage of goods and higher prices. But a prolonged strike can have major consequences on world trade – and eventually also be felt in Sweden.
– If we are talking weeks, it will affect container traffic globally. Also in Europe and in Sweden. Container traffic is interconnected and there will be consequences if it continues for a very long time, says Daniel Harlid.
“A week or so is enough”
The port workers’ union, the International Longshoremen’s Association (ILA), is demanding a wage increase of 77 percent over six years, something the employers have not agreed to. The union also wants to see a stop to the development in terms of automation.
– The problem here is that it goes quite quickly from a strike in the USA to overcrowded container ports in Asia. Fort is a relative term, but a week or so is enough before you see it. This means that there will be delays out of Asia as well.