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"dock strike spreads to the united states"
in the united states, dock strikes have become a real possibility. the international longshoremen's association (ila) plans to start a strike on october 1 unless port operators agree to significant wage increases and restrictions on automation, according to a statement from the association. if the strike unfolds as expected, it will have a huge impact on the u.s. economy.
the impact is far-reaching: port outages and economic losses
the impact of this terminal strike is wide-ranging and is expected to lead to the shutdown of all terminals on the east coast of the united states. the outage will halt half of the containerized imports handled daily in the united states, including critical goods such as food, medicine, electronics and clothing, according to jpmorgan estimates. the outage will cost the u.s. economy approximately $5 billion and trigger supply chain disruptions and price volatility.
from a supply chain perspective: challenges posed by terminal stagnation
in addition to direct economic losses, terminal stagnation also brings many unpredictable challenges. for example, any port congestion could limit the supply of ships and raise the prices shipowners charge customers, ultimately driving up costs for u.s. consumers.
governments and businesses face choices: strikes and trade conflicts
the u.s. government faces difficulties in handling the dock strike. on the one hand, they need to avoid offending unions, but on the other hand, they also need to deal with pressure from voters and republican attacks on the strike. therefore, the us government is working hard to find a solution, but there is currently no clear road map.
looking ahead: how to deal with terminal stagnation
as the possibility of strikes at terminals increases, how to deal with this challenge will become an important issue in global trade. the future trading environment will depend on the severity of port outages and the level of cooperation between governments and businesses.
