The U.S. economy is facing a massive disruption as tens of thousands of dock workers along the East and Gulf coasts walked off the job at midnight on Tuesday, grinding trade to a halt. The strike, organized by the International Longshoremen’s Association (ILA), has affected 14 major ports from New Jersey to Texas, impacting nearly 50% of U.S. imports and threatening to cripple supply chains across the nation.

The strike follows a breakdown in negotiations between the ILA and port ownership, represented by the United States Maritime Alliance (USMX). After months of contentious talks over wages and port automation, the two sides have reached an impasse. The union’s demands for higher pay and resistance to increased automation were not met, leading to the walkout of roughly 45,000 workers.

BREAKING – Over 45k union dockworkers with ILA are officially on strike, shutting down all East and Gulf coast ports, from New York to Miami to Houston. They’re standing to protect their future against the shipping companies forcing automation on the docks. pic.twitter.com/BnRqZzkHqT

— On the Line (@laborontheline) October 1, 2024

Ports in Boston, Philadelphia, Wilmington, Baltimore, Norfolk, Charleston, Savannah, Jacksonville, Tampa, Miami, New Orleans, Mobile, and Houston are all being affected, with striking workers picketing overnight. Images of picket lines have flooded social media, as the economic consequences of this strike begin to ripple through the country.

The timing of the strike couldn’t be worse. As the holiday season approaches, the disruption will likely lead to shortages and delays for imported goods such as clothing, furniture, pharmaceuticals, and even Christmas decorations. Exporters of American goods like beef, poultry, pork, and cotton will also face significant challenges getting their products out of the country.

It’s official. The East and Gulf Coast ports of the United States of America are on strike.

The ILA hasn’t announced a port strike (I keep furiously refreshing their Facebook page) but picket lines are now visible on the gate cameras:https://t.co/NhmITnH9vj pic.twitter.com/tbFiomZC6Y

— Ryan Petersen (@typesfast) October 1, 2024

A last-minute offer from the USMX, which included a nearly 50% wage increase, enhanced retirement contributions, and better healthcare options, was rejected by the union on Monday. The sticking point remains port automation—a key issue the union says threatens jobs. The ILA’s president, Harold Daggett, made it clear in the lead-up to the strike that the union wouldn’t back down, famously warning port ownership, “I’ll cripple you, and you have no idea what that means.”

With no resolution in sight, the Biden-Harris administration has come under fire for not stepping in to prevent the strike. The administration has the option to invoke the Taft-Hartley Act, a law that would allow the president to keep workers on the job while negotiations continue, but it has chosen not to do so. Commerce Secretary Gina Raimondo’s admission on Monday that she had “not been very focused” on the looming strike has only added fuel to the fire, with critics accusing the administration of standing by as a critical labor dispute threatens to derail the economy.

“I have not been very focused on that,” Biden commerce secretary Gina Raimondo says about the upcoming dock worker strike that will choke off half of U.S. imports tomorrow

What exactly has she been focused on?pic.twitter.com/rl71mpfyBN

— Mairead Elordi (@JohnsonHildy) September 30, 2024