The White House has few good options if the port strike becomes protractedYahoo by Ben Werschkul
The Biden administration exerted additional pressure on port negotiators Tuesday and announced an effort to monitor for supply chain weak spots on day one of a dockworkers strike that could ripple through the US economy.
But looming large are questions around what additional steps could be needed in the weeks ahead, from directly mediating the talks to perhaps even forcing union members back to work.
"They're really having to thread the needle politically," noted Bruce Chan, Stifel transportation and logistics analyst, in a Yahoo Finance live appearance Tuesday morning, adding that his base case is for a two-week stoppage.
Whether it's shorter or longer, he added, could depend on "the willingness of the Biden administration to intervene here."
The International Longshoremen's Association union, which represents roughly 45,000 workers, began to set up picket lines just after midnight for the first time since 1977.
The US Maritime Alliance (USMX), which operates the ports and is negotiating with the union, added in a statement that "both sides have moved off their previous positions" but added that it has offered no concession on the key sticking point issue of automation at ports.
That leaves the White House weighing its options amid dwindling chances of a quick organic resolution to the complex talks.
There are two approaches the White House could take — but they come with deep downsides.
On the one side, letting the strike drag on for multiple weeks could threaten not just shortages of some perishable consumer goods but also manufacturing materials that may force the shutdown of factories and deeper economic repercussions.
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https://finance.yahoo.com/news/the-white-house-has-few-good-options-if-the-port-strike-becomes-protracted-160847294.html
