From Shoes to Alcohol, These Products Will Be Affected by Dock Workers’ Strike

Longshoremen strike outside the Port of Houston Authority on October 1, 2024 in Houston, Texas. Credit – Brandon Bell/Getty Images

TThe strike by U.S. dock workers, affecting major ports from Maine to Texas, began Tuesday and poses a major threat to the supply chain that could impact Americans’ ability to buy products such as shoes, car parts, alcohol and some foods.

The strike, which International Longshoremen’s Association (ILA) President Harold Daggett warned could “cripple” the country’s economy, arose from disagreements in contract negotiations between dock workers and the United States Maritime Alliance (USMX) over wages and other issues. According to an analysis by JP Morgan, 36 ports stopped operating, except for shipping operations, which could cost $5 billion a day due to the strike.

The actions of the union, which represents approximately 85,000 workers, worried officials. Many products from many industries may be affected (although workers have agreed to process all types of military shipments). “We don’t realize how much money is coming through these different ports, but it’s trillions of dollars a year from both imports and exports,” says Gregory DeYong, associate professor of operations management at Southern Illinois University. “Every day there is a huge loss to the economy and potential shortage for people doing retail shopping.”

Fifty-three organizations representing manufacturers, farmers, retailers and more wrote a letter On Sept. 17, he called on President Joe Biden to help facilitate negotiations. Just one day of strike caused a five-day backlog, the letter said.

New York Governor Kathy Hochul published a statement It warned Tuesday morning that the state is working diligently to ensure grocery stores and medical facilities get the products they need. Experts say that the repercussions of the strike will be felt across the country, but the disruption in the supply chain of goods does not occur unexpectedly like Covid-19. “These port strikes are warning disruptions,” says Rutgers Business School professor Arash Azadegan. “This helps organizations be better prepared.”

Here are some of the products at issue in the strike.

Fruits, chocolate and alcohol

In 2023, US ports received 39.4 million tons of agricultural products worth more than $110 billion. According to the American Farm Bureau.

The bureau warns that the billion-dollar impact of the attack will be felt especially along the Eastern and Gulf coasts. Nine major ports account for more than 90% of all East Coast containerized agricultural exports, which can transport everything from animal feed to refrigerated meat products. Per U.S. Department of Agriculture.

DeYong says some manufacturers began stockpiling goods in preparation for the strike, but others, especially in the agricultural sector, were unable to do so. “The biggest things we’re going to start seeing early on are perishable items that retailers won’t be able to stock,” he says.

Three-quarters of consumers are likely to experience shortages and delays in bananas passing through ILA-administered ports, according to the Farm Bureau. Cherries, canned goods, hot peppers and chocolate, which are heavily imported, will also be affected by this situation. “All the products that we get from South America that don’t have enough capacity to get them here by train, even if we can get them on the trains, (will be affected),” DeYong says. He predicts that there will be a shortage of grapes and avocados.

As in the US, alcohol is also an affected category. regular import Beer, wine, whiskey, whiskey and rum in affected ports, according to the Farm Bureau.

The United States may face the opposite problem: moving products out of the country. Soy farmers and poultry producers probably There is a domestic supply surplus If they cannot sell their products abroad.

Shoe

The American Apparel and Footwear Association was one of the retailers who signed a letter to Biden. The organization imports more than 50% of its U.S. apparel, shoes and accessories from Eastern and Gulf ports. According to the September press release.

“This outage will occur during the holiday period, when the shipping season is at its busiest, and will further increase the prices of goods, causing inflation to rise rapidly,” the statement said. “This potential shipping crisis will create shortages of goods, and the goods that are still available will be costly for American families.”

The American Home Furnishings Alliance, Fashion Accessories Shippers Association, Florida Retail Federation and others also signed the letter.

auto parts

The auto maintenance industry also relies heavily on East and Gulf Coast ports. Auto Care Association warns He said the strike would make it difficult for repair shops and distributors to meet demand for certain products and parts.

“More than four million Americans working in the auto care industry rely on the steady flow of automotive parts and products through our ports every day to do their jobs,” Bill Hanvey, president of the Auto Care Association, said in a press release. “With each day this strike continues, not only does our industry experience hundreds of millions of dollars in job losses, but the nearly 300 million Americans who drive are placed at greater risk on the road as access to service and repair of their vehicles decreases. ”

Last year, nearly a quarter of all automotive parts were imported from affected ports, according to the press release. While many companies have recently been diverting their goods to West Coast ports in anticipation of strikes, these ports are also overloaded.

“Just because we get our product from the West Coast port doesn’t mean we’re actually going to get it,” DeYong says. “Demand is high at West Coast ports right now because they are open. “They don’t have the capacity to handle everything, so there will be traffic congestion.”

The cost of shipping goods has also increased, meaning consumers will see an increase in product prices.

Electronic

The U.S. depends on buying electronics from Asian countries, including China, which regularly sends microchips. Azadegan says this addiction means people may be lacking in certain electronic devices, such as cell phones.

medical supplies

Experts say people should not stress about the impact of the strike on medical supplies. Unlike other goods, these products or prescriptions can often be shipped via alternative means, such as by plane. “Yes, it will cost more. Yes, there may be more pain and suffering for your supply managers and your logistics managers, but at the end of the day, I think most hospitals, most clinics and healthcare institutions can afford to pay some extra money to get their supplies,” says Azadegan.

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