The ports along the East and Gulf Coasts of the United States could shut down within hours due to a potential dockworkers strike over wage and automation concerns. And it could have a serious effect on the U.S. economy, including the food sector.

On Monday, Reuters reported that the negotiations between the International Longshoremen’s Association (ILA) union, which represents 45,000 port workers, and the United States Maritime Alliance (USMX) employer group hit an impasse over pay. And the contract is set to expire at midnight. It would mark the first coast-wide strike since 1977, Reuters added. One analyst told Reuters that if the strike does indeed move forward, it could cost the U.S. economy up to $5 billion per day. (The Anderson Economic Group put that number closer to $2 billion for a week-long strike, according to CNN.) 

As for what would be affected, well, it would be just about everything. In additional reporting, Reuters noted that the strike could affect 36 ports that bring in everything from “bananas to clothing.” 

CNN also reported that one particular port, Port Wilmington in Delaware, is the “nation’s leading banana port,” with the American Farm Bureau estimating that 1.2 million metric tons of bananas go through the ports, so about 25% of the nation’s bananas. CNN adds that other food items like cherries move through these ports, along with raw goods like sugar and cocoa, as do “a large percentage of imported wine, beer, and hard liquor.” The supply chain could be squeezed to a breaking point, with retailers forced to raise prices on everyday goods, and causing a weeks-long backup at ports, even if the strike is resolved quickly. 

As for what the two sides want, union representatives will not publicly disclose their demands. However, according to CNN, it’s reportedly asking for an annual pay increase that would result in raises totaling 77% through the life of the six-year contract, bringing its top earners from $39 an hour to $69. But, according to the ILA, it only received “insulting” offers in return. 

“My ILA members are not going to accept these insulting offers that are a joke considering the work my ILA longshore workers perform, and the billion dollar profits the companies make off the backs of their labor,” Harold Daggett, the ILA’s international president and chief negotiator, said in a statement. The group added in a statement to the Associated Press, “The Ocean Carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA Longshore Workers an unacceptable wage package that we reject … ILA longshore workers deserve to be compensated for the important work they do keeping American commerce moving and growing.”

For its part, USMX says the union is refusing to negotiate in good faith, with CNN reporting that the two groups have not met in person since June. One person with alleged knowledge of the negotiations told CNN that USMX offered “upwards” of 40% in wage increases over the six-year contract. 

“We remain prepared to bargain at any time, but both sides must come to the table if we are going to reach a deal, and there is no indication that the ILA is interested in negotiating at this time,” USMX said. Under the 1947 Taft-Hartley Act, President Joe Biden technically has the power to step in and order an 80-day cooling-off period, but told reporters he would not be intervening at this time, adding, “Because it’s collective bargaining, I don’t believe in Taft-Hartley.”