The Longshoremen’s strike and its impact in South Carolina

By Staff Writer

Nearly 50,000 members of the International Longshoremen’s Association (ILA) walked off the job Tuesday, October 1, in a strike that is set to disrupt operations at 36 U.S. ports, including the Port of Charleston. The strike stems from a breakdown in contract negotiations between the ILA and the United States Maritime Alliance (USMX), which represents shipping lines, terminal operators, and port authorities.

At the heart of the dispute are automation and wages. The ILA has raised concerns about the increasing use of automated cranes and driverless trucks, technologies that reduce the need for human labor in port operations. Alongside these concerns, dockworkers are pushing for a significant wage increase—demanding a $5-per-hour raise annually over six years, totaling a 77% hike. The USMX, in response, has offered a more than 50% wage increase over the same period.

The strike threatens to be one of the most disruptive work stoppages in recent U.S. history. In South Carolina, the Ports Authority acknowledged the severity of the situation. “Following the break in operations, SC Ports and our maritime industry partners will marshal every resource possible to facilitate the swift recovery of business,” the Ports Authority said in a statement. Plans to mitigate the disruption will depend on the duration of the strike.

Economists like Joey Von Nessen, Research Economist at the University of South Carolina’s Moore School of Business, believe that while retailers and manufacturers had anticipated the strike and stockpiled additional inventory, consumers could feel the ripple effects of the strike within three weeks. This has already sparked panic buying, with social media reports showing empty shelves where toilet paper and paper towels used to be, reminiscent of pandemic-related shortages. However, experts have reassured the public that the supply of toilet paper is unlikely to be affected, as most of it is produced domestically.

Certain perishable imports, however, may not fare as well if the strike drags on. The U.S. imports 100% of its bananas, with more than half arriving through ports now shut down. Unlike durable goods, bananas have a short shelf life, and retailers were unable to stockpile in advance. Other goods potentially at risk include cherries, cocoa, sugar, and imported alcoholic beverages like wine, beer, and liquor.

The strike has also raised concerns about its broader impact on South Carolina, especially in the wake of Hurricane Helene. U.S. Senator Lindsey Graham (R-SC) urged President Joe Biden to intervene. “I can’t emphasize this enough: The strike needs to end sooner rather than later. I cannot tell you how seriously this will jeopardize our recovery in South Carolina and North Carolina. This is going to jeopardize public health. It’s going to jeopardize public safety,” Graham said in a statement.

As negotiations between the ILA and USMX continue, the strike’s outcome remains uncertain, but its potential to upend supply chains and the economic recovery in the Carolinas and beyond grows by the day.