White House Monitoring US Port Discussions and Assessing Supply Chain Impacts, According to Reuters

By Lisa Baertlein and David Shepardson

LOS ANGELES/WASHINGTON – Officials from President Joe Biden’s administration are keeping an eye on ongoing labor negotiations but are not seeking to intervene in the discussions to prevent a potential strike on October 1 at U.S. East and Gulf Coast ports. These ports are crucial as they handle approximately half of the nation’s ocean imports, administration representatives stated on Tuesday.

The negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) appear to be at an impasse, primarily over compensation, as the September 30 contract expiration deadline looms.

A strike involving 45,000 workers represented by the ILA at around thirty-six ports—including key locations like New York, New Jersey, Houston, and Savannah, Georgia—could lead to significant delays and increased costs throughout U.S. supply chains. This situation comes amid rising prices for essential items such as food, housing, and healthcare, which have become critical topics ahead of the November 5 presidential election.

“We are monitoring and assessing potential impacts on U.S. supply chains related to port operations, should the need arise,” said White House spokesperson Robyn Patterson. “We encourage both parties to persist in negotiations for a mutually beneficial agreement that avoids disruptions,” she added.

The USMX, representing container carriers and terminal owners like Maersk, reported on Monday that various federal agencies, including the Department of Labor and the Federal Mediation and Conciliation Service, have reached out to them.

For over a month, Acting Labor Secretary Julie Su and the Department of Labor have maintained communication with both sides in the negotiations, as this is standard procedure for establishing dialogue, according to an administration official.

Involvement from the federal government would only occur at the invitation of both the union and the employers.

The Biden administration has indicated that the president does not plan to invoke the Taft-Hartley Act to intervene in the situation at the East Coast and Gulf of Mexico ports.

Last year, Biden acted on the invitation from both parties during the West Coast port negotiations, sending Su to facilitate a deal that resulted in a 32% pay increase over the duration of the contract.