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PHILADELPHIA (AP) – Dock workers 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 commodity shortages if it goes on for more than a few weeks.

The agreement between the ports and around 45,000 members of the International Longshoremen’s Association expired at midnight, and although progress was reported in negotiations on Monday, the workers went on strike. The strike which affects 36 ports is the first by the union since 1977.

Workers began picketing at the Port of Philadelphia shortly after midnight, walking in a circle at a railroad crossing outside the port and chanting “No work without a fair contract.”

The union had billboards on the side of a truck reading: “Automation Hurts Families: ILA Stands Up to Protect Jobs.”

The United States Maritime Alliance, which represents the ports, said Monday night that both sides had moved away from their previous wage offers, but when picket lines went up just after midnight, it was clear that they had not agreement reached.

The union’s opening offer in the negotiations was a 77% pay rise over the six-year life of the agreement, with President Harold Daggett saying inflation and years of small increases needed to be compensated. UDP members make a base salary of about $81,000 a year, but some can pull in over $200,000 annually with large amounts of overtime.

But on Monday night, the league said they had increased their offer to 50% increases over six years, and promised to keep restrictions on automation in place from the old contract. The union wants a complete ban on automation. It was not clear how far apart the two sides are.

“We are hopeful that this may allow us to fully resume collective bargaining around the other remaining issues in an effort to reach an agreement,” the alliance’s statement said.

The union did not respond to requests for comment on the negotiations on Monday night, but said earlier in the day that the ports had rejected calls for a fair deal and that the union appeared determined to strike. The two sides had not held formal talks since June.

The alliance said its proposal tripled employer contributions to retirement plans and strengthened health care options.

During the Monday, some ports were already preparing for a strike. The Port of Virginia, for example, was in the process of ceasing operations. It received the last inbound train for delivery at 8 am, closed its gates to incoming lorries at noon and asked ships to leave by 1 pm Cargo operations ceased at 6 pm

“We’re treating this just like we would during the ramp up to a potential hurricane,” Joe Harris, the port’s spokesman, told The Associated Press. “And we will bring it back online just like we would recover from a hurricane. We have an experienced team. We have done this in the past.”

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

But if it lasts more than a few weeks, a work stoppage would significantly disrupt the nation’s supply chain, potentially leading to higher prices and delays in goods reaching homes and businesses.

If pulled out, the strike will force businesses to pay shippers for delays and cause some goods to arrive late for the peak holiday shopping season – which could affect deliveries of anything from toys or artificial Christmas trees to cars, coffee and fruit.

It is likely that the strike will have an almost immediate effect on supplies of perishable imports such as 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 could also siphon off exports from East Coast ports and create traffic jams at West Coast ports, where workers are represented by a different union. Railroads say they can ramp up to ship more freight from the West Coast, but analysts say they can’t make up for the cargo being handled east.

“If the strikes go ahead, they will cause huge delays across the supply chain, a ripple effect that will undoubtedly roll over into 2025 and cause chaos across the industry,” Jay noted. Dhokia, founder of supply chain management and logistics company Pro3PL.

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

The strike comes a few weeks before the presidential election and could become a factor if there is a shortage. Retailers, auto parts suppliers and product 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 an exchange with reporters on Sunday, Biden, who has worked to court union votes for Democrats, said “no” when asked if he planned to intervene in the possible work stoppage.

A White House official said on Monday that the administration, at Biden’s direction, has been in regular communication with the ILA and the alliance to keep the talks moving forward. The president directed Chief of Staff Jeff Zients and Director of the National Economic Council Lael Brainard to convene the board members of the alliance on Monday afternoon and encourage them to resolve the dispute fairly and quickly – in a way that accounts for the success of shipping companies in the past years and contributions. of union workers.

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Krisher was reported from Detroit. AP writers Ben Finley in Norfolk, Virginia, Mae Anderson in New York, Stephen Groves in Dover, Delaware, Dee-Ann Durbin in Detroit, and Zeke Miller and Josh Boak in Washington contributed to this report.