Daily losses of about $4 billion are anticipated from US port strike
Bloomberg estimates the strike will cost the US shipping industry between $3.8 billion and $4.5 billion per day. Other projected effects of the strike include worsening traffic at US West Coast ports.
All shipments of automobiles and container cargo to the US Gulf and East Coasts have been halted due to a strike that the Longshoreman’s Association has initiated. This news report follows up on a previous CommoPlast report on September 26, when the maritime union’s threat to strike on the East Coast had already reduced shipments to the region.
Bloomberg estimates the strike will cost the US shipping industry between $3.8 billion and $4.5 billion per day. Other projected effects of the strike include worsening traffic at US West Coast ports.
Last week, anticipation of the strike had already caused shipping from Asia to the West Coast to increase by 1%. Now that the strike is in effect, traffic through this and other routes is expected to continue rising.
Regarding the projected duration of the strike, an ILA union leader asserted the union's willingness to fight "as long as necessary," implying a readiness to strike until their demands are met.
The strike will not affect bulk cargo, military cargo, or energy supplies.
Written by: Derek Yong