Gulf and East Coast Strike Threatens to Cripple U.S. Supply Chain - Rep. Vince Fong Calls on Biden-Harris Administration to Act to Protect Economy

Today, Rep. Vince Fong (CA-20) joined 68 members of Congress to urge the Biden-Harris Administration to prevent a strike at the East Coast and Gulf Coast ports.  

“We must act take immediate action to protect our nation’s supply chain,” said Rep. Vince Fong. “This looming strike threatens our economy with shortages in needed goods, parts, and supplies which will lead to higher inflation.” 

The letter, by the House Transportation & Infrastructure Committee, cites the economic challenges and supply chain issues a port strike would cause to consumers and small businesses across the nation. This potential crisis could start as soon as October 1, leading to delays in goods and to even more increases in prices hitting the pocketbooks of all Americans. Should this strike occur, it is projected to significantly delay shipments prior to the busy holiday season, costing the American economy billions of dollars a day. 

Read the full letter here or read the highlights below.   

We write to express our serious concern with the state of the labor contract negotiations between the United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA). Given the devastating economic consequences of a potential strike and the Administration’s lack of engagement to date, we urge you to give immediate attention to this matter, to aid in these negotiations, and find a reasonable resolution to these contract disputes.

Now with the potential for further disruption of service at East and Gulf Coast ports, carriers and importers are once again being forced to adjust shipments in anticipation of future delays. Retailers are reportedly accelerating shipments into East and Gulf Coast ports to get ahead of the potential work stoppages beginning in October. Moreover, cargo volumes are once again being diverted back to the West Coast to avoid the impending situation, further straining port capacity. If a work stoppage occurred at East and Gulf Coast ports in October, estimates suggest that a one-week strike would take until mid-November to recover from and clear the backlog of cargo.