A historic strike is underway at U.S. ports - and the impact on global supply chains could be huge --"We see the dominoes fall in multiple stages now." | 1 Oct 2024 | A massive dockworker strike at seaports on the U.S. East and Gulf coasts is expected to wreak havoc on global supply chains and the economy, with American consumers likely to notice shortages of popular products if the work stoppage lasts for a long time. Workers at ports stretching from Maine to Texas went on strike early Tuesday in a dispute over wages and automation. The action, which is likely to have severe consequences on ships carrying billions of dollars of cargo, is the first by the International Longshoremen's Association, or ILA, union in nearly half a century. Ocean supply chains have already been hit hard this year by conflict in the Red Sea, a lengthy drought affecting the Panama Canal, and the Baltimore bridge collapse. Even so, Peter Sand, chief analyst at ocean freight rate intelligence platform Xeneta, has said that given more than 40% of total "containerized goods" enter the U.S. via ports on the East and Gulf coast, "the stakes could not be higher." Speaking to CNBC's Street Signs Europe on Tuesday, Sand said he expects the strike to last for one week. "We see the dominoes fall in multiple stages now. At first, of course, the immediate effect is on the U.S. East and Gulf coast, right?" Sand said. There will then be a knock-on effect for vessels currently queuing outside the ports, he added, meaning their next journeys to the U.S. with new goods will be delayed.

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