The Port of New York and New Jersey is bracing for a potential work stoppage by unionized dockworkers on the East Coast and the Gulf Coast. The International Longshoremen's Association union, representing 85,000 workers at 36 ports, is prepared to strike if a new deal is not reached before the current contract expires at midnight on September 30. The looming strike could significantly impact the nation's shipping cargo, which is crucial for the economy since these ports handle nearly half of the country's shipping cargo.

Port authorities are already taking preemptive measures to prevent a massive backlog of containers at the busiest port on the Eastern Seaboard. Beth Rooney, the port director of the Port Authority of New York and New Jersey, stated that discussions are ongoing on how to manage cargo operations leading up to the potential work stoppage. Ocean carriers have started announcing plans to embargo export cargo coming to the East Coast from the Midwest, with the embargo timeline dependent on the cargo's origin. If a strike occurs and operations halt, vessels are expected to either wait in designated areas or slow steam to postpone their arrival, a strategy similar to what was done during the COVID pandemic.

As of Friday, data from Kpler indicates that 147 vessels carrying an estimated $34 billion in freight are expected to arrive at East Coast and Gulf ports by October 1. The union's demands for higher wages and a ban on the automation of crane and container movements are central to the negotiations. The US Maritime Alliance has expressed a commitment to resume talks to avoid the first national longshoremen's strike since 1977, emphasizing the need to negotiate a new agreement to avert the potentially detrimental consequences of a strike on both parties and the economy.