Consumers are quickly finding it harder to find products like bananas, electronics and “breathtaking” liquor now that longshoremen from Maine to Texas are officially on strike. you might notice.
As of Tuesday, 36 ports on the East Coast and Gulf Coast were closed as labor negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) stalled, resulting in 45,000 union members leaving their jobs. Ta. The ILA strike, the first since 1977, could be one of the biggest supply chain disruptions since COVID-19, leaving large numbers of critical products out of stock in stores and affecting millions of people. Americans’ year-end shopping may be disrupted.
Additionally, the strike is predicted to cost the economy up to $5 billion per day, as well as potentially devastating both small and medium-sized businesses, already frustrated by housing and food inflation. It could also push up prices for voters who are concerned about this, experts told USA. today.
“If the strike continues for more than a week, there could be a shortage of products heading into the holiday season,” Eric Clark, portfolio manager at Accuvest Global Advisors, told USA TODAY. “Inflation could continue for six months at a level equal to or worse than the peak inflation level of a year ago.”
Are they buying up toilet paper again?During the port strike, some consumers are buying up products in a panic.
Here’s what consumers need to know about how the strike could affect their daily and holiday shopping plans.
What products should consumers stock up on?
Chris Tan, a distinguished professor of supply chain management at the University of California, Los Angeles, said consumers could once again face rising prices and shortages, as about half of U.S. ocean imports pass through ports. told USA TODAY.
The following products may be out of stock or have their prices soared:
Seafood: Perishable products such as cod from Iceland and Canada and shrimp from Thailand and Ecuador cannot be easily transported by rail because they need to be refrigerated, Tan said. Electronics: Mobile phones and computers are now imported from Southeast Asian countries such as Vietnam, but Mr Tan said Thailand and Indonesia, rather than China, go through ports on the east coast. Pharmaceuticals: Although air transport is easier, Tan said consumers may still notice drug shortages if negotiations are not concluded within about a month. Automobiles and auto parts: European cars transported in containers and auto parts often pass through East Coast and Gulf ports. In fact, experts say Maryland’s Port of Baltimore leads the nation in car shipments. Machinery parts: According to S&P Global Market Intelligence, East Coast ports outnumber other U.S. ports for shipments of machinery, fabricated steel products, and precision equipment. Alcohol: Wine, beer and spirits imported from Europe, South America and the Caribbean may be affected. Fortunately, American drinkers have plenty of domestic options. Bananas: About 75% of the nation’s bananas come through ports on the East Coast and Gulf Coast, said Jason Miller, interim dean of Michigan State University’s School of Supply Chain Management. Additionally, the fruit is perishable, so it’s not economical to transport it by plane, Miller wrote in a LinkedIn post.
Will holiday shopping be affected?
Americans may also have trouble completing their holiday shopping in the near future.
Due to impending supply chain disruptions due to the strike, consumers may struggle to find the toys and other gifts they are looking for for their children in the coming weeks and months.
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While large companies like Walmart and Costco can afford to acquire and store inventory early and absorb the costs of rerouting deliveries to the West Coast, small businesses typically cannot, experts say. It is said that it is not possible.
As a result, “some businesses may miss out on critical holiday supplies entirely,” Ben Johnston, chief operating officer at small business finance firm Capitas, told USA TODAY. “A strike of this nature could be the difference between making a profit that year or enduring a loss.”
The clock is ticking to avoid holiday chaos.
“If the strike continues for more than a week, there could be product shortages heading into the holiday season,” said Eric Clark, portfolio manager at Rational Dynamic Brands Fund.
How else could a strike hurt farmers, small businesses, and jobs?
The Biden administration has declined to invoke the Taft-Hartley Act, which would have allowed the federal government to force ports to reopen by seeking a court injunction to halt a strike, allowing both sides to continue negotiations. Instead, White House officials encouraged continued discussions as they sought support from retail, agriculture, commerce, auto care, toys and other groups.
Meanwhile, experts say companies that sell products to international markets could be hit hard. Agricultural exporters of soybeans and poultry products, for example, may be unable to ship their products overseas and risk losses as their products are perishable.
On the employment front, companies facing parts shortages may resort to maintaining lean inventories and may have to shut down assembly lines during extended strikes to keep costs low. Experts told USA TODAY that it may not be possible. As a result, Americans could face furloughs and job losses at a time when the job market is already cooling.
