The US dockers’ strike is just hours away as the longshoremen’s union blasts employers

The International Longshoremen’s Association (ILA) on Monday accused the alliance, which represents employers at more than a dozen major ports, of blocking negotiations, paving the way for a devastating strike that would begin in about 12 hours.

The ILA represents more than 85,000 workers and has been negotiating since last May with companies, terminal operators and port associations represented by the United States Maritime Alliance (USMX). Thousands of workers on the East Coast and Gulf Coast are poised to strike as early as 12:01 a.m. ET on Tuesday.

“The shipping companies represented by USMX want to enjoy the whopping billions in profits they will make in 2024 while offering ILA Longshore workers an unacceptable wage package that we reject,” the ILA said in a statement opinion.

“It is a disgrace that most of these foreign-owned shipping companies operate a make-and-take business,” the union continued. Many members of the alliance are foreign organizations, such as the Danish shipping company Maersk (AMKBY) or China’s state-owned Cosco Shipping (CICOY).

Both Maersk and Cosco were beaten up by the ILA for not converting its profits into better wages for dock workers. Cosco, for example, reported $63.22 billion in revenue in 2022, according to ILA, while Maersk took home more Sales last year were more than $51 billion.

Read more: A major port strike in the US could soon shake the economy. Here’s what you should know

The USMX last week filed a complaint about unfair labor practices and called on the National Labor Relations Board to ask the union to resume negotiations. The White House and several federal agencies have taken steps to help the parties negotiate and avoid work stoppages that could devastate the national economy.

Ports and facilities that host about 51% of the country’s total port capacity would be affected by the possible work stoppages, it said Miter Corporation. A strike would affect almost every industry, delaying everything from deliveries of foreign fruit to supplies for automakers and pharmaceutical companies.

The potential damage from such a strike is expected to cost around $1 billion 5 billion dollars a dayaccording to analysis by shipping container marketplace Container xChange and JP Morgan (JPM). According to Oxford Economics, a prolonged strike could affect up to 100,000 jobs and reduce U.S. economic activity by $4.5 billion to $7.5 billion for each week it lasts.

“The congestion and delays at these major ports will significantly impact container availability, increase costs and disrupt schedules,” said Christian Roeloffs, CEO of Container xChange, with which the company works more than 1,500 shipping companiessaid in a customer advisory on Thursday.

Shipping companies, including members of the USMX, have begun making adjustments and warning their customers to get their affairs in order before the strike.

Hapag Lloyd (HPGLY) plans to implement a “Work stoppage target surcharge” for imports to the Gulf and East Coast of the United States. Maersk has issued a similar surcharge that will come into effect on October 21, depending on the impact of the potential supply chain disruption. Another major player, CMA GCM, announced on September 17 a series of changes to its port tariffs that would come into effect on October 11.

“This is unprecedented and they are doubling their $30,000 fee for loading the same container from multiple shippers,” the ILA said on Monday, broadly referring to companies increasing surcharges due to the potential work disruption. “They’re killing the customers.”