At least two of Louisiana’s largest ports are expected to shut down on Tuesday, when local members of the International Longshoreman’s Association union walk off the job over a contract dispute with major container companies.
The strike involves thousands of workers at ports from Maine to Texas, including roughly 600 ILA cargo handlers at the Port of New Orleans and around two dozen workers at the Inland Rivers Marine Terminal in the Port of Greater Baton Rouge.
Ahead of the work stoppage, ports expanded hours to allow shippers to move extra cargo to try to prevent major supply chain disruptions.
Cruise ships and military cargo won’t be affected by the strike, according to the union. But economists say it could have far-reaching ripple effects on local and national supply chains, depending on how long it lasts.
“A lot of stuff that people usually use daily, they won't be getting it after a while if we stay on strike long enough,” said Henry Glover, the president of New Orleans' ILA union chapter.
The ILA’s master contract with the United States Maritime Alliance expires on Oct. 1. It's unclear how long the strike will last, but Union leadership have said they plan to hit the streets until they secure better wages and more job protections against automation.
What will the impact be on Louisiana’s economy?
Both New Orleans and Baton Rouge ports are a key part of the supply chain for thousands of different goods and services used by Americans.
The Port of New Orleans handles over half a million tons of cargo containers each year, according to its website. Baton Rouge unloaded over 20,000 cargo containers in 2023.
Products range, but Louisiana’s ports are a key source of the country’s imports of various chemicals, as well as coffee and bananas due to its proximity to Central and South America, said Dek Terrell, director of LSU’s Center for Economics, Business, & Policy Research.
“It won’t be quite as bad as during the pandemic when it was really difficult to get a lot of things,” Terrell said. “But certainly your favorite item, if it turns out to be something that's imported, could be impacted.”
The pain Louisiana consumers feel will depend on how long the strike lasts, Terrell added.
“If this strike lasts one or two weeks, then I would hope that a lot of the companies that rely on these imports and a lot of the exporters can delay shipments, or they've already accumulated inventories to where this strike won't be overwhelming to Louisiana's economy,” Terrell said. “I think once it passes a week or two weeks, then you start to see impacts where you might see temporary layoffs at some companies and some product shortages.”
How are ports responding?
Louisiana’s ports aren’t involved in the contract negotiations themselves.
As the conflict with the ILA and USMX plays out, they’ve reworked hours and services to offload as much cargo ahead of the strike as possible.
“Port NOLA is proactively working with its customers and terminal operators to minimize supply chain disruptions by offering weekend gate operations to shippers and trucking companies,” said Kimberly Curth, the press secretary for Port NOLA.
Baton Rouge’s port, which is a major export location for local plastics manufacturers, is trying to load out as much as possible prior to the strike, said Jay Hardman, the port’s executive director.
“There remains the possibility that some products could be railed out of our area but only to domestic users so the impact of the strike will have a greater impact on our export shippers which involves about 100 percent of what is currently moving,” he said.
How long will the strike last?
Both sides have traded blame for the drawn out negotiations over wages and automation protections.
ILA says its average wage increases have hovered around 2 percent per year for several decades, which hasn’t kept up with the pace of inflation.
“Everything is more expensive, even compared to six-years ago,” Harold Daggett, ILA’s president said in a statement. “Our members are struggling to pay their mortgages and rent, car payments, groceries, utility bills, taxes, and in some cases, their children’s education.”
USMX has blamed the union for being unwilling to negotiate around its offers. On Sept. 26, container companies filed an unfair labor practice complaint against the union.
“USMX has been clear that we value the work of the ILA and have great respect for its members,” it said in a statement. “We have a shared history of working together and are committed to bargaining.”
Workers in New Orleans hope to see better protections against automation come out of the new master contract, said Glover.
Advances in technology have already led to a decades-long decline of jobs at the port, which employed as much as 5,000 longshoremen in the 1970s, the last time workers went on strike, Glover added.
“We believe that robots shouldn't have to take our jobs so companies can boost their profits,” he said. “We want to continue to pay taxes within our community, to be able to buy houses. If they automate, all of that's over with.”
