A potential West Coast port strike could cost the U.S. $500M per day, according to a shipping analyst.
Dockworkers in Los Angeles and Long Beach are currently negotiating with their employers.
- According
to industry experts, the risk of a breakdown between dockworkers and
employers could cause the next supply chain crisis in the U.S.
- While
a breakdown is still considered an unlikely scenario, a ship already
missed its scheduled docking due to the ongoing negotiations.
- According to a report from The National Association of Manufacturers in 2021, a strike could cost the U.S. $500M a day.
- A 15-day strike could result in 41,000 job losses.
- The
Biden Administration is unlikely to let a work stoppage go on for long,
given the fragile economy. The President could invoke the Taft-Hartley
Act to call workers back to the docks.
- A similar situation happened in 2012 when an eight-day lockout in the Port of Long Beach caused an $8B loss for the U.S.
