U.S. Dockworkers Strike; Auto Care Association Calls for Federal Action

Oct. 2, 2024

U.S. automotive aftermarket businesses are expected to lose up to almost $340 million each day the strike continues.

Following the beginning of a strike including 45,000 U.S. dockworkers, the Auto Care Association is calling for action to prevent disruptions in the supply chain in a recent press release.

As of 12:01 a.m. ET, Oct. 1, dockworkers have gone on strike as a result of the failure of a resolution between the International Longshoremen’s Association and the United States Maritime Alliance.

ILA has cited a growing disparity between stagnant workers’ wages and the rising profits of ocean carriers as the basis for the strike, as well as concerns over their jobs being threatened by automation, according to an ACA blog post.

The strike impacts 14 ports across the East and Gulf Coasts, including the Ports of Boston, New York/New Jersey, Philadelphia, Baltimore, Norfolk, Wilmington, Charleston, Savannah, Jacksonville, Miami, Tampa, Mobile, New Orleans, and Houston.

Estimates have suggested each day the strike continues, a five to seven day delay will occur within the supply chain, ACA shared. With these ports handling a significant portion of the auto care industry’s imports and exports, U.S. automotive aftermarket businesses are expected to lose up to almost $340 million each day.

The strike may also lead to an influx of cargo in West Coast ports, leading to delays in regions there, as well.

President Biden has shared that he does not plan to invoke the Taft-Hartley Act, which President Bush used in 2002 during the West Coast port strike. The action would allow the president to force ILA members back to work, and for the two parties to attempt a negotiation again.

“Each day that this strike continues, not only does our industry lose out on hundreds of millions of dollars in business, but the nearly 300 million Americans who drive are more at risk on the road as access to service and repair of their vehicles diminishes,” said ACA President and CEO Bill Hanvey. “We are calling on the Biden administration to take all possible and appropriate steps to facilitate a resolution between the two parties so that Americans across the country can get back to work safely.”