As expected, the dockworks at East and Gulf Coast ports began striking today. Their contract expired at midnight. This strike affects all ocean ports from Maine to Teaxs.

The International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) have been attempting to negotiate a new contract for months. However reports seem to indicate that both sides are far from an agreement. Pete Buttigieg, the acting U.S. Secretary of Labor, has invited both sides to meet and discuss a contract, but the ILA has declined.

If the strike drags out beyond a few days, steamship lines will likely begin diverting containers. Carriers have already announced congestion surcharges for containers going to East and Gulf Coast ports.

The reality is that with the election only five weeks away, politics will be playing a part in the process. Many business leaders are asking the Biden administration to intervene. The ILA is asking the government to stay out of the negotiation process. This is a tricky situation.