If the strike continues, shipments would need be rerouted to US West Coast or Canadian ports, leading to higher costs and longer transit times, which may result in increased prices for consumers, it said.
This could add to Indian exporters’ woes who are already facing higher freight costs and delays due to disruptions in the Red Sea route. Both these will force ships to take a much longer route and this detour would increase travel time and costs by 2.5-3 times, adding thousands of extra kilometers for internal transport within the US, the think said.
Around 25,000 dockworkers at US East Coast and Gulf Coast ports have been on strike since October 1, shutting down 14 major ports, including New York/New Jersey, Baltimore, Miami, and Houston.
As per the report, the number of container ships waiting to unload has jumped from three to 45, and the backlog could double by the end of this week, potentially taking weeks or even months to clear. The strike is costing the U.S. economy an estimated $4.5 billion to $7.5 billion per week.
“The strike is less than 48 hours old and is already causing delays in unloading and processing of shipments from India, affecting goods like textiles, pharmaceuticals, and auto parts,” said GTRI founder Ajay Srivastava.The International Longshoremen’s Association (ILA) is pushing for significant wage increases and a ban on automation, while the United States Maritime Alliance (USMX) has offered a nearly 50% wage hike over six years. Talks are ongoing, but no deal has been reached. The US government is monitoring the situation but has not stepped in.