NEW YORK,Oct 02 V7N- Dockworkers along the U.S. East Coast and Gulf Coast initiated their first large-scale strike in nearly five decades on Tuesday, following a breakdown in wage negotiations for a new labor contract. The strike has disrupted about half of the nation's ocean shipping, halting the flow of crucial goods from food to automobiles across 36 ports, including New York, Baltimore, and Houston. Analysts estimate the strike could cost the U.S. economy roughly $5 billion per day, threatening jobs and potentially increasing inflation.

The International Longshoremen's Association (ILA), representing 45,000 workers, rejected the United States Maritime Alliance's (USMX) final proposal and demanded more significant wage increases and protection from port automation projects. ILA President Harold Daggett emphasized that workers deserve higher wages, citing the significant profits shipping companies have earned since the pandemic.

President Joe Biden’s administration has refrained from using federal powers to end the strike, instead urging dockworker employers to increase their contract offer. The White House highlighted the record profits made by shipping companies during the pandemic and advocated for a fair wage increase for the workers who kept ports running during that time. Vice President Kamala Harris, involved in a close presidential race with Donald Trump, faces political pressure, with Trump blaming inflation for the strike and criticizing the Biden administration's handling of the economy.

Businesses reliant on ocean shipping are concerned about the potential long-term impact, particularly ahead of the winter holiday season. Many retailers, including Walmart and Costco, have implemented backup plans, importing merchandise early to avoid disruptions. Some companies, like Danish drugmaker Novo Nordisk, have resorted to using air freight to bypass the port delays. While the strike is not expected to lead to immediate shortages, prolonged disruptions could increase import costs, ultimately affecting consumers.

Shipping delays have already mounted, with over 38 container vessels anchored near U.S. ports as of Tuesday, compared to just three on Sunday. Despite the economic implications, both sides remain at a standstill in negotiations.

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