The Alliance for Chemical Distribution (ACD) President and CEO Eric R. Byer released a statement following the failure of the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) to ratify a labor contract before the Sept. 30 deadline. The master contract between the ILA and USMX covers 45,000 dockworkers at 36 ports from Maine to Texas.

“ACD is extremely disappointed that the ILA and USMX failed to reach a labor contract agreement. For months, both sides have shown an unwillingness to negotiate in good faith, allowing a strike to occur despite having ample time to reach a deal. The ocean shipping market is already in disarray, and this strike will lead to severe delays, reroutes, and increased uncertainties in the delivery of essential products at countless U.S. ports. ACD urges the Biden administration to intervene swiftly, reopen the ports, and push both sides toward an agreement to prevent further supply chain disruptions and significant economic consequences.”

During an 11-day strike on the West Coast in 2002, the reported economic impact was $1 billion per day, and it took six months to recover.

Ahead of the labor contract deadline, ACD joined two letters—one on June 25 and another on Sept. 23—to the Biden administration, endorsed by more than 150 shipping organizations, urging the White House to pressure both sides into an agreement. ACD has also reached out to congressional offices to raise concerns about the looming strike and its potential economic impact.