By: Staff Writer
October 1, 2024
The Caribbean, heavily dependent on imports from the US and using their ports as transshipment points from around the world and even from around the region, so the US east-coast dockworker strike that took effect today will be a serious problem for Caribbean countries.
Dockworkers at ports from Maine to Texas began walking picket lines early Tuesday in a strike over wages and automation that could reignite inflation and cause shortages of goods if it goes on more than a few weeks.
The United States Maritime Alliance (USMX) told the media that the contract they’re negotiating with the International Longshoremen’s Association covers about 25,000 workers. More than a dozen ports are impacted including PortMiami and Port Everglades.
“Our members top out at $39 (per hour). We are looking for a 77 percent, close to 77 percent increase over the next seven years. When you look at the cost of inflation that’s more than reasonable,” said Johnnie Dixon, president of the International Longshoremen’s Association chapter in Fort Lauderdale.
In addition to higher wages, they also want a stop to automation.
“Our offer would increase wages by nearly 50 percent, triple employer contributions to employee retirement plans, strengthen our health care options, and retain the current language around automation and semi-automation,” USMX said in a statement.
Caribbean government’s have yet to respond to the crisis and there may be very little they can do at the moment.
The only major Caribbean economies with a trade surplus is Trinidad and Tobago with $1.66billion in 2023 and Guyana with a trade surplus of 3.3 billion for Q1 of 2024. Every other country has a trade deficit, including the Dominican Republic.
Even the trade surplus with Trinidad and Tobago along with Guyana is as a result of oil exports and not agricultural products. They both still need to buy food and textiles.
A lengthy shutdown could raise prices on goods around the US and in the Caribbean and potentially cause shortages and price increases at big and small retailers alike as the holiday shopping season — along with a tight presidential election — approaches.
“First and foremost, we can expect delays to market. And those delays depend on really what the commodities are and priorities at the ports and how quickly things move,” said Mark Baxa, president of the Council of Supply Chain Management Professionals.