The union dockworkers strike that started early Tuesday is hitting U.S. ports hard. But for now, it’s not expected to affect the oil and gas industry. Experts say that might change if the strike lasts too long.
The Department of Energy (DOE) stated that the shutdown of 36 East and Gulf Coast ports won’t immediately impact fuel imports or exports. They said other workers handle those operations, so supplies and prices won’t change right away.
Oil and gas expert Adam Ferrari disagrees. Speaking to FOX Business, Ferrari said, “There might not be an ‘immediate’ impact, but the whole economy, including oil and gas, will feel it.” He pointed out that these ports bring in about half of U.S. container imports.
Ferrari warned that if the strike escalates, it could disrupt the entire supply chain. The oil and gas industry depends on that chain to move products. He said strikes could lead to shortages and price hikes, especially for consumers.
“This is a domino effect,” Ferrari explained. “Rising gas prices could shake stock markets and investor confidence. It might also stir up more issues with government policies already under strain in this sector.”
Chris Spear, CEO of the American Trucking Associations, shared similar concerns. He said the strike could severely impact trucking and the broader economy, with more pain the longer it goes on.
Energy analyst Phil Flynn also weighed in. He said the real issue could be a drop in demand. "Container ships burn oil when they move, but if they don’t, demand for oil drops," Flynn wrote. A bigger problem could come if factories shut down, pushing the U.S. into a deeper recession.
The strike is the first by the International Longshoremen's Association (ILA) since 1977. They represent 45,000 workers, and their contract with U.S. port employers expired Monday. Wage hikes, compensation, and protection from automation are key sticking points in the negotiations.
Many industries are already feeling the pinch. Trade groups are pushing President Biden to step in and use his power under the Taft-Hartley Act to force ports to reopen while talks continue.
But over the weekend, Biden said he wouldn’t intervene, stating that he doesn’t “believe in Taft-Hartley.”