RALEIGH, N.C. (WTVD) — Shipping ports along the Gulf and East Coast are hours away from a work stoppage as two unions continue a contract dispute.
The International Longshoremen's Association (ILA) and the United States Maritime Union (USMX) are at an impasse. Their current six-year contracts expire at midnight Tuesday.
ILA is seeking a 77% wage increase over the next six years and limits on automation, while USMX had offered a 40% increase. The offer was increased to 50% on Monday night, but no deal has yet been reached.
If the agreement is not met, the dispute would result in a shutdown of work at ports from Texas to Maine, including the Port of Wilmington.
“While the ocean-going shipping companies represented by USMX want to enjoy billions of dollars in rich profits in 2024, they are offering unacceptable wage packages to ILA longshore workers. We reject this,” the ILA said in a written statement on its website. “Meanwhile, longshore workers dedicated to ILA continue to be crippled by inflation due to USMX's unfair wage package.”
On Monday, the Port of Wilmington agreed to stay open until 6 p.m. and allow materials to be unloaded until 11:59 p.m.
If no agreement is reached, all ports will be closed from midnight.
“It's a trickle-down effect,” said Tim Sverink, owner of Home Accent Furnishings. He and his wife have operated the business on Hillsboro Street in Raleigh for 10 years.
They source much of their inventory from shipments through Wilmington. They use a vendor in Virginia who receives product from Wilmington.
When a port is backed up, product can no longer flow to vendors. And eventually Subelinks will also be affected.
“(I) hope they don't close,” Sverink said.
The longer the stoppage lasts, the more ships remain waiting to be unloaded.
“The ships that are there today can't get out. Tomorrow there will be ships that can't get in. On the 2nd, ships will come in. On October 3rd, ships will come in. And they'll just wait. “To start the anchor,'' he said.
There is no immediate impact on customers, but that's no reason to believe anyone is certain, Sverink said.
“Again, it depends on how long the ports have been closed and how much stock they have right now. It could be a month before we actually see any problems,” he said.
Economic experts predict the shutdown could cost the U.S. economy billions of dollars.
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