Shipping container service halted in Wilmington due to dockworker strikes
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Cargo cranes and shipping containers at the Port of Wilmington. Photo: John Greim/Loop Images/Universal Images Group via Getty Images
Shipping container operations at the Port of Wilmington in North Carolina have been halted due to tens of thousands of dockworkers going on strike up and down the East Coast.
Why it matters: A work stoppage that lasts more than a few days will snarl supply chains, raising the prospect of higher prices and shortages of everything from auto parts to bananas as the U.S. heads into the holidays — and a presidential election, Axios' Emily Peck writes.
- A strike could cost the economy $5 billion a day, per a JPMorgan analysis.
Driving the news: The stand off comes after a contract expired Tuesday between the International Longshoreman's Association and United States Maritime Alliance.
- The Longshoreman's Association is looking for a significant increase in wages that so far hasn't been met. It's led to the first port strike on the East Coast since 1977.
State of play: North Carolina does not have one of the major ports along the East Coast, but the Port of Wilmington and Port of Morehead City moved a total of around 4.6 million short tons of cargo in its fiscal year 2023, a 12% increase year over year.
The latest: The Port of Wilmington's South Gate (used for container shipments) is closed for the pickup or delivery of cargo until an agreement is reached, North Carolina State Ports Authority said.
- No container vessel operations or intermodal rail cargo operations there will be conducted until further notice. No intermodal rail cargo will be worked on or off the rail at the Port of Wilmington.
- The state port authority had extended its south gate hours over the weekend as part of effort to get more work done before the work stoppage.
- General cargo operations at Wilmington's North Gate and Morehead City are still on a normal schedule, though no general cargo vessel operations will be conducted.
What they're saying: "North Carolina Ports is not a party to the agreement and therefore is not a participant in the negotiations. North Carolina Ports is hopeful that both parties will return to the negotiating table and reach an agreement that allows all the ports of the East and Gulf Coast to resume operations," Brian E. Clark, executive director of the state port authority, said in a statement.