Dockworkers' strike could push up prices and cause shortages if it lasts for weeks

PHILADELPHIA (AP) — From Maine to Texas, dockworkers at 36 ports across the eastern U.S. are now on strike for the first time in decades. And the work stoppage could snarl supply chains — leading to shortages and higher prices if it stretches on for more than a few weeks.

Workers began walking picket lines early Tuesday in a strike over wages and the ports' use of automation, though some progress had been reported in the latest contract talks. The contract between the ports and about 45,000 members of the International Longshoremen’s Association expired at midnight.

The strike also comes just weeks before a tight presidential election and could become a factor if there are shortages that affect voters.

In early picketing, workers outside the Port of Philadelphia walked in a circle and chanted, “No work without a fair contract.” The union, which is striking for the first time since 1977, posted message boards on the side of a truck reading: “Automation Hurts Families: ILA Stands For Job Protection.”

Boise Butler, president of the union local, asserted that the workers want a fair contract that doesn’t allow for the automation of their jobs.

The shipping companies, Butler argued, made billions during the pandemic by charging high prices.

“Now," he said, “we want them to pay back. They’re going to pay back.”

Butler said the union plans to strike for as long as it needs to achieve a fair deal and has valuable leverage over the companies.

“This is not something that you start and you stop,” he said. “We're not weak,” he added, pointing to the union's vital importance to the nation's economy.

At Port Houston, at least 50 workers started picketing around midnight local time carrying signs saying, “No Work Without a Fair Contract."

The U.S. Maritime Alliance, which represents the ports, said Monday evening that both sides had moved off their previous wage offers. But no deal was reached.

Labor experts maintain that the workers on strike command a lot of leverage. The union's most recent contract with the alliance was negotiated before the COVID-19 pandemic. Factors ranging from inflation to concerns about evolving technology have boosted the workers' standing to demand more.

“This is a very opportune time,” said William Brucher, an assistant professor of labor studies and employment relations at Rutgers University.

Even though inflation has diminished, he noted, the cost of living is still much higher than it was before COVID-19, which means the buying power of workers' wages has shrunk.

Brucher also pointed to momentum from other labor activity over recent years as unions across industries have demanded more and seen companies provide concessions as a result.

Leading to the strike, the union's opening offer in the talks was for a 77% pay raise over the six-year life of the contract, with President Harold Daggett saying it’s necessary to make up for inflation and years of small raises. ILA members make a base salary of about $81,000 per year, but some can pull in over $200,000 annually with large amounts of overtime.

Monday evening, the alliance said it had increased its offer to 50% raises over six years, and it pledged to keep limits on automation in place from the old contract. The alliance also said its offer tripled employer contributions to retirement plans and strengthened health care options.

The union wants a complete ban on automation. It wasn’t clear just how far apart both sides are.

In a statement early Tuesday, the union said it rejected the alliance's latest proposal because it “fell far short of what ILA rank-and-file members are demanding in wages and protections against automation.” The two sides had not held formal negotiations since June.

Supply chain experts say consumers won’t see an immediate impact from the strike because most retailers stocked up on goods, moving ahead shipments of holiday gift items.

But if it goes more than a few weeks, a work stoppage could lead to higher prices and delays in goods reaching households and businesses.

If drawn out, the strike will force businesses to pay shippers for delays and cause some goods to arrive late for peak holiday shopping season — potentially impacting delivery of anything from toys and artificial Christmas trees to cars, coffee and fruit.

The strike will likely have an almost immediate impact on supplies of perishable imports like bananas, for example. The ports affected by the strike handle 3.8 million metric tons of bananas each year, or 75% of the nation’s supply, according to the American Farm Bureau Federation.

It also could snarl exports from East Coast ports and create traffic jams at ports on the West Coast, where workers are represented by a different union. Railroads say they can ramp up to carry more freight from the West Coast, but analysts say they can’t move enough to make up for the closed Eastern ports.

J.P. Morgan estimated that a strike that shuts down East and Gulf coast ports could cost the economy $3.8 billion to $4.5 billion per day, with some of that recovered over time after normal operations resume.

Retailers, auto parts suppliers and produce importers had hoped for a settlement or that President Joe Biden would intervene and end the strike using the Taft-Hartley Act, which allows him to seek an 80-day cooling off period.

But during a Sunday exchange with reporters, Biden, who has worked to court union votes for Democrats, said “no” when asked if he planned to intervene in the potential work stoppage.

In an update Tuesday morning, the White House maintained that administration officials were working “around the clock” to help negotiations move forward. Biden and Vice President Kamala Harris were also “closely monitoring” potential supply chain impacts, the White House added, enlisting a task force to meet daily and prepare for any disruptions.

Biden's keeping his word on not intervening carries a lot of weight for the coming election, experts say.

“Democrats really can't afford to alienate organized labor,” Bruncher said.

Taft-Harley injunctions by a president are “widely despised” by unions across the country, he said, and those same unions are necessary for turnout at the polls, particularly for Harris' campaign.

Krisher reported from Detroit, Grantham-Philips from New York. Associated Press journalists Ben Finley in Norfolk, Virginia, Mae Anderson in New York, Dee-Ann Durbin in Detroit, Josh Boak in Washington, and Annie Mulligan in Houston contributed to this report.

Workers take part in a port strike at Port Newark, Tuesday, Oct. 1, 2024, in Bayonne, N.J. (AP Photo/Eduardo Munoz Alvarez)

Cranes and shipping containers are seen at Port Newark during a port strike, Tuesday, Oct. 1, 2024, in Bayonne. (AP Photo/Eduardo Munoz Alvarez)

Dockworkers strike in front an entrance to a container terminal near Boston Harbor, Tuesday, Oct. 1, 2024, in Boston. (AP Photo/Steven Senne)

Cranes and shipping containers are seen at Port Jersey during a port strike, Tuesday, Oct. 1, 2024, in Bayonne. (AP Photo/Eduardo Munoz Alvarez)

Dockworkers strike in front of an entrance to a container terminal near Boston Harbor, Tuesday, Oct. 1, 2024, in Boston. (AP Photo/Steven Senne)

Longshoremen pose for a photo while picketing at Bayport Terminal on Tuesday, Oct. 1, 2024, in Houston. (AP Photo/Annie Mulligan)

Longshoremen strike at midnight at Bayport Terminal on Tuesday, Oct. 1, 2024, in Houston. (AP Photo/Annie Mulligan)

Striking Philadelphia longshoreman picket outside the Packer Avenue Marine Terminal Port, Tuesday, Oct. 1, 2024.(AP Photo/Ryan Collerd)

Striking Philadelphia longshoreman picket outside the Packer Avenue Marine Terminal Port, Tuesday, Oct. 01, 2024.(AP Photo/Ryan Collerd)

Hundreds of longshoremen strike together outside of the Virginia International Gateway in Portsmouth, Va., Tuesday, Oct. 1, 2024. (Billy Schuerman/The Virginian-Pilot via AP)

Longshoremen strike at midnight at Bayport Terminal on Tuesday, Oct. 1, 2024, in Houston. (AP Photo/Annie Mulligan)

Longshoremen strike at midnight at Bayport Terminal on Tuesday, Oct. 1, 2024, in Houston. (AP Photo/Annie Mulligan)

FILE - Containers are moved at the Port of New York and New Jersey in Elizabeth, N.J., on June 30, 2021. (AP Photo/Seth Wenig, File)

Philadelphia longshoremen assembled outside the Packer Avenue Marine Terminal Port begin to strike as their contract runs out at midnight, Tuesday, Oct. 1, 2024. (AP Photo/Ryan Collerd)

Boise Butler, president of Local 1291, chants along with his fellow longshoremen outside the Packer Avenue Marine Terminal Port in Philadelphia, Tuesday, Oct. 1, 2024. (AP Photo/Ryan Collerd)

Boise Butler, president of ILA Local 1291, speaks to the press outside the Packer Avenue Marine Terminal Port in Philadelphia, Tuesday, Oct. 1, 2024. (AP Photo/Ryan Collerd)

Hundreds of longshoremen strike together outside of the Virginia International Gateway in Portsmouth, Va., Tuesday, Oct. 1, 2024. (Billy Schuerman/The Virginian-Pilot via AP)

Philadelphia longshoremen assembled outside the Packer Avenue Marine Terminal Port begin to strike as their contract runs out at midnight, Tuesday, Oct. 1, 2024. (AP Photo/Ryan Collerd)

Boise Butler, president of Local 1291, with an American flag on his wheelchair, pickets with his fellow longshoremen outside the Packer Avenue Marine Terminal Port in Philadelphia, Tuesday, Oct. 1, 2024. (AP Photo/Ryan Collerd)

Longshoremen strike at midnight at Bayport Terminal on Tuesday, Oct. 1, 2024, in Houston. (AP Photo/Annie Mulligan)

FILE - Shipping containers are stacked in the Port of New York and New Jersey in Elizabeth, N.J., May 20, 2021. (AP Photo/Seth Wenig, File)

The International Longshoremen’s Association flag and an American flag fly together outside the Packer Avenue Marine Terminal Port as workers prepare to strike as their contract runs out at midnight, Monday, Sept. 30, 2024. (AP Photo/Ryan Collerd)

Striking Philadelphia longshoremen picket outside the Packer Avenue Marine Terminal Port, Tuesday, Oct. 1, 2024. (AP Photo/Ryan Collerd)

Hundreds of longshoremen strike together outside of the Virginia International Gateway in Portsmouth, Va., Tuesday, Oct. 1, 2024. (Billy Schuerman/The Virginian-Pilot via AP)

Dockworker Meikysha Wright and others strike outside the Virginia International Gateway in Portsmouth, Va., Tuesday, Oct. 1, 2024. (Billy Schuerman/The Virginian-Pilot via AP)

JERUSALEM (AP) — Israel warned Lebanese people to evacuate border communities Tuesday to avoid harm from limited ground operations it said were launched against Hezbollah, and said it would retaliate if Hezbollah ally Iran launched a missile attack on Israel that a senior U.S. official said could come “imminently.”

The U.S. official, who spoke on condition of anonymity to discuss the intelligence, warned of “severe consequences” should Iran launch a ballistic missile against Israel. U.S. ships and aircraft are positioned in the region to assist Israel in the event of an attack from Iran.

Israeli military spokesman Rear Adm. Daniel Hagari said Israel had not identified any launches from Iran as of Tuesday afternoon. Iran’s state media has not suggested an attack is imminent, and Iranian officials could not be immediately reached for comment.

White House officials did not immediately offer any evidence backing the intelligence finding. The official said the administration was confident in the determination.

Iran launched an unprecedented direct attack on Israel in April, but few of its projectiles reached their targets. Many were shot down by a U.S.-led coalition, while others apparently failed at launch or crashed in flight.

While Hezbollah denied Israeli troops had entered Lebanon, the Israeli army announced it had also carried out dozens of ground raids into southern Lebanon going back nearly a year. Israel released video footage purporting to show its soldiers operating in homes and tunnels where Hezbollah kept weapons.

If true, it would be another humiliating blow for Iran-backed Hezbollah, the most powerful armed group in the Middle East. Hezbollah has been reeling from weeks of targeted strikes that killed its leader, Hassan Nasrallah, and several of his top commanders.

On Tuesday morning, Israel warned people to evacuate to the north of the Awali River, some 60 kilometers (36 miles) from the border and much farther than the Litani River, which marks the northern edge of a U.N.-declared zone intended to serve as a buffer between Israel and Hezbollah after their 2006 war.

The border region has largely emptied out over the past year as the two sides have traded fire. But the scope of the evacuation warning raised questions as to how deep Israel plans to send its forces into Lebanon.

An Israeli airstrike hit a residential building near Beirut Wednesday, causing damage and blowing out windows in the area. The strike appeared to hit an apartment about 100 meters from the Iranian Embassy. There was no immediate word on casualties.

Anticipating more rocket attacks from Hezbollah, the Israeli army announced new restrictions on public gatherings and closed beaches in northern and central Israel. The military also said it was calling up thousands more reserve soldiers to serve on the northern border.

An Associated Press reporter saw Israeli troops operating near the border in armored trucks, with helicopters circling overhead, but could not confirm ground forces had crossed into Lebanon.

Ahead of the Israeli announcement of an incursion, U.S. officials on Monday said Israel had described launching small ground raids inside Lebanon as it prepared for a wider operation.

Neither the Lebanese army nor a U.N. peacekeeping force that patrols southern Lebanon have confirmed that Israeli forces entered. The U.N. force said a cross-border operation would be a violation of Lebanese sovereignty.

Hezbollah spokesman Mohammed Afif dismissed what he said were “false claims” of an Israeli incursion. He said Hezbollah is ready for “direct confrontation with enemy forces that dare to or try to enter Lebanon.”

Hagari, the Israeli military’s top spokesperson, claimed troops were conducting “localized ground raids” on Hezbollah positions in southern Lebanon to ensure Israeli citizens could return to their homes in the north.

“We’re not going to Beirut,” he said.

He said Israel had carried out dozens of small raids inside Lebanon since Oct. 8, when Hezbollah began firing rockets into Israel after the outbreak of the war in Gaza.

He said Israeli forces had crossed the border to collect information and destroy Hezbollah infrastructure, including tunnels and weapons. Israel has said Hezbollah was preparing its own Oct. 7-style attack into Israel. It was not immediately possible to confirm those claims.

An Israeli military official said troops taking part in the latest incursion were within walking distance of the border, focused on villages hundreds of meters (yards) from Israel. The official, who spoke on condition of anonymity in line with military regulations, said there had been no clashes with Hezbollah fighters.

The Israeli military was accused of lying to media in 2021 when it released a statement implying that ground troops had entered Gaza. The military played down the incident as a misunderstanding, but well-sourced military commentators in Israel said it was part of a ruse to lure Hamas into battle.

An Israeli military official said Hezbollah had launched rockets at central Israel, setting off air raid sirens and wounding a man. Hezbollah said it fired salvos of a new kind of medium-range missile at the headquarters of two Israeli intelligence agencies near Tel Aviv.

Afif, the Hezbollah spokesman, said the missile attack “is only the beginning.”

The Israeli military official said Hezbollah had also launched projectiles at Israeli communities near the border, targeting soldiers without wounding anyone.

Hezbollah began firing rockets into northern Israel shortly after Hamas’ Oct. 7 attack into Israel ignited the war in Gaza. Israel has launched retaliatory airstrikes and the conflict has steadily escalated. In recent weeks Israel has unleashed a punishing wave of airstrikes across large parts of Lebanon.

Hagari said the U.N. Security Council resolution that ended the 2006 Israel-Hezbollah war had not been enforced and that southern Lebanon was “swarming with Hezbollah terrorists and weapons.”

That resolution called for Hezbollah to withdraw from the area between the border and the Litani River and for the Lebanese army and U.N. peacekeepers to patrol the region. Israel says those and other provisions were never enforced. Lebanon has long accused Israel of violating other terms of the resolution.

The military statements indicated Israel might focus its ground operation on the narrow strip along the border, rather than launching a larger invasion aimed at destroying Hezbollah, as it has attempted in Gaza against Hamas.

Hezbollah and Hamas are close allies backed by Iran, and each escalation has raised fears of a wider war in the Middle East that could draw in Iran and the United States, which has rushed military assets to the region in support of Israel.

Israeli strikes have killed over 1,000 people in Lebanon over the past two weeks, nearly a quarter of them women and children, according to the Health Ministry. Hundreds of thousands have fled their homes.

Hezbollah is a well-trained militia, believed to have tens of thousands of fighters and an arsenal of 150,000 rockets and missiles. The last round of fighting in 2006 ended in a stalemate, and both sides have spent the past two decades preparing for their next showdown.

Recent airstrikes wiping out most of Hezbollah’s top leadership and the explosions of hundreds of pagers and walkie-talkies belonging to Hezbollah indicate Israel has infiltrated deep inside the group’s upper echelons.

The group’s acting leader, Naim Kassem, said in a televised statement Monday that Hezbollah commanders killed in recent weeks have already been replaced.

As the fighting intensifies, European countries have begun pulling their diplomats and citizens out of Lebanon.

Mroue reported from Beirut and Madhani reported from Washington. Associated Press writers Kareem Chehayeb in Beirut and Zeke Miller and Lolita C. Baldor in Washington contributed.

Follow AP’s war coverage at https://apnews.com/hub/israel-hamas-war

A burnt building shows damage at the site of an Israeli airstrike in Beirut's southern suburb, Lebanon, Tuesday, Oct. 1, 2024. (AP Photo/Hassan Ammar)

Israeli soldiers sleep on tanks in a staging area in northern Israel near the Israel-Lebanon border, Tuesday, Oct. 1, 2024. (AP Photo/Baz Ratner)

Israeli soldiers pray at a staging area in northern Israel near the Israel-Lebanon border, Tuesday, Oct. 1, 2024. (AP Photo/Baz Ratner)

Smoke rises from the site of an Israeli airstrike in Beirut's southern suburb, Lebanon, Tuesday, Oct. 1, 2024. (AP Photo/Hassan Ammar)

Israeli shelling hits an area in southern Lebanon as seen from northern Israel, Tuesday, Oct. 1, 2024. (AP Photo/Leo Correa)

An Israeli Apache helicopter fires a missile towards southern Lebanon as seen from northern Israel, Tuesday, Oct. 1, 2024. (AP Photo/Leo Correa)

A man checks the damaged buildings at the site of an Israeli airstrike in Beirut's southern suburb, Lebanon, Tuesday, Oct. 1, 2024. (AP Photo/Hassan Ammar)

Smoke rises from the site of an Israeli airstrike in Beirut's southern suburb, Lebanon, Tuesday, Oct. 1, 2024. (AP Photo/Hassan Ammar)

A man documents the damaged buildings at the site of an Israeli airstrike in Beirut's southern suburb, Lebanon, Tuesday, Oct. 1, 2024. (AP Photo/Hassan Ammar)

Smoke rises from the site of an Israeli airstrike in Beirut's southern suburb, Lebanon, Tuesday, Oct. 1, 2024. (AP Photo/Hassan Ammar)

A man documents the damaged buildings at the site of an Israeli airstrike in Beirut's southern suburb, Lebanon, Tuesday, Oct. 1, 2024. (AP Photo/Hassan Ammar)

Israeli army tanks manoeuvre in a staging area in northern Israel near the Israel-Lebanon border, Tuesday, Oct. 1, 2024. (AP Photo/Baz Ratner)

Israeli army tanks manoeuvre in a staging area in northern Israel near the Israel-Lebanon border, Tuesday, Oct. 1, 2024. (AP Photo/Baz Ratner)

A burnt out building at the site of an Israeli airstrike in Beirut's southern suburb, Lebanon, Tuesday, Oct. 1, 2024. (AP Photo/Hassan Ammar)

An Israeli tank manoeuvres in northern Israel near the Israel-Lebanon border, Monday, Sept. 30, 2024. (AP Photo/Baz Ratner)

Israeli shelling hits an area in southern Lebanon as seen from northern Israel, early Tuesday, Oct. 1, 2024. (AP Photo/Leo Correa)

Smoke rises from an Israeli airstrike that hit the southern suburb of Beirut, Lebanon, Tuesday, Oct. 1, 2024. (AP Photo/Hussein Malla)

Israeli shelling hit an area in southern Lebanon as seen from northern Israel, Monday, Sept. 30, 2024. (AP Photo/Leo Correa)

A man documents the damaged buildings at the site of an Israeli airstrike in Beirut's southern suburb, Lebanon, Tuesday, Oct. 1, 2024. (AP Photo/Hassan Ammar)

Israeli soldiers sleep on tanks in a staging area in northern Israel near the Israel-Lebanon border, Tuesday, Oct. 1, 2024. (AP Photo/Baz Ratner)