Port strike threatens supply of consumer goods

The first dockworkers’ strike in roughly 50 years has shut down 36 ports from Maine to Texas, and it can wreck the supply chain and the economy.

The strike resulted from failed negotiations between the longshoremen’s union and port operators over pay and fear of job loss from automation. As a result, close to 45,000 dockworkers (a part of the International Longshoremen’s Association) have stopped unloading containers of perishable consumer goods.

Economists and trade experts worry that the strike could affect the prices of fruits, juices, and alcohol.

According to JPMorgan estimates, a strike could cost the US economy up to $5 billion a day.

What products can be affected?
Experts worry the country could see a shortage of bananas and pricier cherries at grocery stores.

Other products that can be impacted and see delays in the near future include seafood, coffee, vegetables not indigenous to the US, and alcohol.

Experts also worry about auto parts and electronics.

Retailers are trying to reroute goods to West Coast ports or use costly air freight to avoid empty shelves.

Due to the strike, the US may also find it tougher to export items.

Hoarding frenzy
Several people have taken to social media to report toilet paper shortages in Costco and Walmart, which can be attributed to panic-buying. Experts warn not to take this as a sign of a supply shortage.

President Joe Biden and his administration are monitoring the situation, but he has not yet intervened.

Analysts warn that if the strike continues, prices will rise, and the country could see a delay in a range of goods, from toys to artificial Christmas trees to cars, potentially disrupting the holiday shopping season. They also anticipate the recovery could take weeks.