U.S. ports along the East and Gulf coasts are scheduled to close Tuesday. The union represents tens of thousands of port workers and an industry group representing port operators and shipping companies is arguing over a new labor contract.

Experts warn that extended work stoppages could lead to higher costs of goods across the country and lead to shortages ahead of the holiday shopping season. A week-long strike could cost the economy nearly $3.8 billion and increase the cost of consumer goods, according to the Conference Board, which called the situation a “political minefield” as it comes just before the November presidential election.

Other estimates of the potential economic impact also suggest the strike could take its toll, although losses would likely represent only a small fraction of the nearly $29 trillion U.S. economy.

“A port strike could cost the U.S. economy billions of dollars every day and harm American businesses, workers and consumers across the country,” Business Roundtable CEO Joshua Bolten said in a statement over the weekend. “We call on both sides to reach an agreement before the deadline on Monday evening.”

Such a breakthrough seemed unlikely late Monday afternoon.

The contract between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX), which represents the ports and shipping companies, expires at midnight on Monday. According to the ILA, the strike is scheduled to officially begin on Tuesday at 12:01 p.m. Eastern Time.

The two sides have not been at the negotiating table since June, and as of Monday afternoon there was little sign that they were ready to resume talks.

According to USMX, a total of 14 ports with approximately 25,000 workers could be affected by the strike: Baltimore; Boston; Charleston, South Carolina; Jacksonville, Fla.; Miami; Houston; Mobile, Alabama; New Orleans; New York/New Jersey; Norfolk, Va.; Philadelphia; Savannah, Georgia; Tampa, Fla.; and Wilmington, Delaware.

The ILA is calling for significant wage increases and a complete ban on the use of automated cranes, gates and container transporters to unload and load cargo at ports that handle about half of the country's shipping cargo.

“The shipping companies represented by USMX want to enjoy the whopping billions in profits they will make in 2024 while offering ILA longshoremen an unacceptable wage package that we reject,” the union said in a statement on Monday.

USMX did not immediately respond to a request for comment.

If a strike poses a threat to national health or security, President Joe Biden could seek a court order under the Taft-Hartley Act requiring an 80-day cooling-off period. But Biden administration officials have repeatedly said that he would not take action to prevent a strike and that this was the case Contract dispute should be resolved through collective bargaining.

“Senior officials have been in touch with USMX representatives and urged them to reach a fair agreement – ​​one that reflects the companies’ success – fairly and quickly. “Senior officials have also contacted the ILA to convey the same message,” White House spokesman Robyn Patterson said.

As the ILA's first attack on cargo terminals on the East and Gulf Coasts since 1977 appears imminent, officials in New York and New Jersey have worked to minimize potential supply chain disruptions by positioning trucks to transport food and medical supplies have.

Fuels such as heating oil and diesel gas are transported in a way that would not be affected by a strike. said New York Governor Kathy Hochul in a news conference Monday, although she noted that the “potential for disruption is significant.”

New York doesn't expect shortages of essential goods any time soon, so there's no need to run to the grocery store and stockpile items as has been the case during the pandemic, Hochul said. However, there may be shortages of individual foods. For example, bananas, the state would continue to receive food supplies from major markets such as Canada, California and Mexico, as well as New York itself, should a strike last more than a few weeks, the governor added.

But the auto industry could feel a more immediate impact, as Hochul warns potential buyers to call ahead.

“If you're expecting a new car this week, you may want to discuss this with your dealer. For example, it may not arrive in the next few weeks,” she warned.