Historic Strike Halts U.S. Coastal Shipping: Economic Fallout Looms

Dockworkers on the U.S. East and Gulf Coasts initiated a major strike for the first time in nearly 50 years, disrupting ocean shipping after contract negotiations fell apart over wage disputes. The strike impacts 36 ports and is anticipated to cost the economy billions daily. Despite pressures, President Biden's administration is not intervening, urging employers to offer fair wages instead.

Dockworkers on the U.S. East and Gulf Coasts began a historic strike on Tuesday, marking the first large-scale stoppage in nearly 50 years. The strike, affecting 36 ports from Maine to Texas, arose after failed negotiations over wage disputes, halting nearly half of the country's ocean shipping operations.

President Joe Biden's administration has opted not to use federal powers to end the strike, urging employers to increase their contract offer instead. The International Longshoremen's Association, representing 45,000 port workers, rejected the final proposal from the United States Maritime Alliance, leading to a shutdown of vital shipping routes.

With the strike expected to impact the economy by billions of dollars daily, businesses and consumers are on edge. Analysts warn of potential inflation spikes, job threats, and increased costs for imports as ports remain closed. The strike underscores the ongoing tension between labor demands and corporate profits.

(With inputs from agencies.)