Port strike threatens another supply chain crisis: CEI analysis

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Today marks the beginning of a union strike against East and Gulf Coast ports that could trigger a similar supply chain crisis like that of 2021. CEI Research Fellow Sean Higgins says the underlying issue is the union’s opposition to any modernization of the ports.

“Today’s strike by the International Longshoreman’s Association (ILA) against ports along the east coast and the Gulf of Mexico is primarily a rear-guard action against automation taking away any of the jobs of the union’s 45,000 members. The ILA wants no automation of any kind at the ports. The union’s opposition to any change is a major reason why US ports lag far behind in efficiency compared to those of other countries, according to World Bank rankings. Should the union get what it wants, US consumers will suffer the effects of an outdated, inefficient supply chain for years to come. The ILA should moderate its demands and learn to adapt to change rather than resist it. 

“Despite the walkout, the Biden administration should hold off on intervening for the time being at least. There is still time for the parties to reach an amicable deal on their own and they should be given that chance.”