Dismissed dock workers at 36 ports on the East and Gulf coasts went on strike early Tuesday amid an impasse in negotiations over a new contract with a group representing port employers.

The International Longshoremen’s Association (ILA), which represents 45,000 longshoremen, began its first strike since 1977 after a six-year contract with the US Maritime Alliance (USMX), which represents longshoremen. employers in the portexpired on Monday evening.

Negotiations between the ILA and USMX have so far stalled over the union’s demands for wage increases and compensation, as well as protections against automation at ports.

The ILA has said it will exempt cruise ships and military cargoes from the strike and continue to deal with them to avoid disruptions to travelers’ schedules and national security.

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The dock workers’ strike will impact ports on the East Coast and the Gulf Coast. (Photographer: Michael Nagle/Bloomberg via Getty Images/Getty Images)

USMX reportedly made a new offer to the ILA on Monday afternoon that would have increased wages by nearly 50% over the new contract and tripled them. employer contributions to pension schemesbetter healthcare and retained language about automation in the deal. Sources told FOX Business that the ILA rejected the offer and did not submit a counter response.

The strike comes after USMX filed an unfair labor complaint with the National Labor Relations Board against the ILA last week, alleging the group violated labor laws by refusing to bargain. The ILA criticized the measure as a “publicity stunt” and said USMX should file labor complaints against port employers for not paying dock workers better wages.

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Port employers and unionized dockworkers found themselves at an impasse in negotiations on Monday evening. (Elijah Nouvelage/Bloomberg via Getty Images/Getty Images)

US seaports from Maine to Texas will be affected by the strike. These ports together process approximately half of the total quantity American import and are also crucial hubs for American companies’ exports.

Imports of cars and auto parts, agricultural products such as bananas, machinery, steel structures, furniture, clothing and more will be affected. Ports on the East Coast and Gulf Coast also process significant percentages of exported automobiles and auto parts, pharmaceuticals, beef, pork, poultry, eggs, lumber, plastics and other products or raw materials.

A JP Morgan analysis estimated that the daily cost of a dock strike by longshoremen on the East and Gulf coasts would cost the U.S. economy between $3.8 billion and $4.5 billion per day if operations slow.

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The US economy could suffer losses of more than $5 billion a day if the port strike continues. (Photographer: Luke Sharrett/Bloomberg via Getty Images/Getty Images)

President Bidenwhose administration has sought to facilitate talks between the two sides, has said he will not use a federal labor law known as the Taft-Hartley Act to intervene in the strike. Under that law, Biden could take action that results in an 80-day “cooling off” period during which negotiations can resume while workers return to work.

The U.S. Chamber of Commerce, the largest trade group representing U.S. companies, urged Biden in a letter to invoke Taft-Hartley to “protect our economy” by avoiding a work stoppage.

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“Taft-Hartley would give both parties in the negotiations time to reach an agreement on a new labor contract,” Chamber President Suzanne Clark wrote on Monday. “Significant differences remain between USMX and ILA over a new contract that cannot be resolved before the current contract expires today.”

Daniel Hillsdon of FOX Business contributed to this report.