SAN FRANCISCO, CA - With the contracts for 20,000 dock workers due to expire at midnight on Monday night, The International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) are sounding positive about their efforts to reach a new labor agreement.

"Dockworkers are looking forward to negotiating a fair agreement that protects the good jobs and benefits that support thousands of families and dozens of communities around West Coast ports," ILWU President Bob McEllrath said in a report by the Wall Street Journal.

Echoing him, ILWU spokesman Craig Merrilees said, "In fact, the negotiations are proceeding normally with talks characterized by both sides as 'positive' and 'productive.'"

Retailers and economists across the country certainly hope for a speedy resolution of this conflict which threatens to further disrupt an already fragile U.S. economy. This is because any closure of America's western ports, especially those at Seattle, Los Angeles, and Long Beach, California could have dire economic consequences. According to a study by the Interindustry Forecasting Project at the University of Maryland, the results of even a 5-day shut-down would be estimated to reduce GDP by $1.9 billion a day, disrupt 73,000 jobs, and reduce the purchasing power of the average American household by $81. These costs would only grow with the length of the strike.

"If there's a strike or a walkout that lasts for five days, it would be approximately a $2 billion per day loss to the economy. If it goes on longer than that, it could be as high as $2.5 billion a day," said Matthew Shay, CEO of the National Retail Federation, to reporters at CNBC.

Realizing the stakes, both parties remained committed to continuing talks even past the midnight deadline. "Negotiations will continue on Monday and likely to continue into mid-July," a spokesman for the PMA told CNBC.

Retailers nonetheless have been preparing themselves in the event of a worst case scenario. A recent survey by Wolfe Research showed that 30% of the 50 shippers questioned reported increased port shipments coming in during the 2nd fiscal quarter as retailers stocked up for summer. A survey by Buckingham Research of railway shippers revealed similar findings.

Kelly Kolb, Vice President of Government Affairs at the Retail Industry Leaders Association, said, "While the retail community remains hopeful that a deal can be reached before the current contract expires, memories of the challenges from 2002 are still fresh in the minds of many. During the work stoppage of those negotiations, the American economy lost nearly a billion dollars a day, as goods passed out of season and produce rotted on the docks."

For now however, all industry insiders can do is wait for news of an agreement and hope for the best.

Stay tuned to AndNowUKnow for developments on this ongoing situation.