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Contract talks between dockworkers and their employer on the East and Gulf coasts have yet to begin, but tensions are already flaring, (subscription) reports.

What’s going on: “The International Longshoremen’s Association … is already threatening a strike against shipping companies and port employers if a deal on a new multiyear contract can’t be reached before the current agreement expires Sept. 30.”

• The ILA, which represents more than 45,000 dockworkers “at ports from Maine to Texas, has told local chapters to resolve local work issues with employers by May 17 so that a coast-wide deal can be negotiated before the current contract expires. Formal negotiations would be scheduled once the local agreements are reached.”
• Talks began in late 2022 but stalled a year ago.

The background: In September, after 14 months of negotiations and several walkouts and , West Coast dockworkers with their employer, the Pacific Maritime Association.

• The Biden administration stepped in to help broker that deal.

Why it’s important: “Any walkout would hit the gateways in the middle of the busiest part of the shipping season, when retailers and other importers prepare for holiday consumer sales.”

• To avoid potential delays, East Coast importers are expected to bring in holiday-season goods early this year or send more goods from Asia to the U.S. via West Coast ports.
• The large wage increases ILA is said to be pursuing could prove difficult for carriers to sustain, given the post-pandemic decline in freight demand.