The International Longshoremen’s Association has begun strike action, their first labor dispute since 1977. With approximately 50,000 workers on strike, operations at 14 ports across the US East and Gulf coasts begin to grind to a halt.
The affected ports include Boston, New York/New Jersey, Philadelphia, Wilmington, North Carolina, Baltimore, Norfolk, Virginia, Charleston, South Carolina, Savannah, Georgia, Jacksonville, Florida, Tampa, Florida, Miami, New Orleans, Mobile, Alabama, and Houston, whose operations represent nearly 50% of all imports into the US. The delays and backlog of shipping activity could impact firms such as Walmart, Samsung, Ikea, and other major retailers while costing the US economy billions of dollars.
This news is one of the latest events that BTY has been monitoring amongst a continued market trend of labor disputes and work stoppages that have risen sharply since COVID-19.
Since the beginning of record inflation levels in 2022, North America has witnessed a surge in strike actions as workers increasingly advocate for fair wages and improved working conditions. Impacts of labor disputes have been felt across many industry sectors, such as:
🔘 Concrete truck drivers in Vancouver went on strike for five weeks in 2022, significantly hindering construction activity as roughly 35% of all concrete supply was halted.
🔘 In July 2023, the International Longshore and Warehouse Union went on a 13-day strike at the Port of Vancouver to advocate for high wages and to voice concerns over contracting and job automation. This disrupted approximately $10 billion worth of trade as the Port of Vancouver handles more than 40% of all cargo shipped to Canada.
🔘 United Auto Workers union went on strike for more than a month in September 2023 to advocate for higher wages and better worker protections. This was the first trilateral strike against Ford, General Motors, and Stellantis in the union’s history.
🔘 The Aircraft Mechanics Fraternal Association went on strike in July 2024 for better pay and benefits, causing more than 1,000 cancelled WestJet flights and impacting more than 100,000 air travelers.
🔘 In addition to the ILA strike action, dockworkers at the Port of Montreal have initiated a three-day strike at two terminals, effectively halting more than 40% of container traffic at Canada’s second-largest port facility.
Labor disruptions have significant impacts on local economies, halting supply chains and creating volatility for businesses, workers, and consumers. For the construction industry, strike action has a visible and immediate impact; disruptions of any magnitude often have cascading effects on project timelines and budgets.
BTY tracks events and trends such as labor disputes in our industry to better inform Owners, Developers, Lenders, and other stakeholders to help them price and manage complex risks on major capital projects in real estate and infrastructure development. Connect with us to find out more about how our cost, risk, and schedule advisory teams can support your projects.
