From Shoes to Alcohol, These Products Will Be Impacted by the Dockworkers’ Strike

Oct 1, 2024 at 5:40 PM

Navigating the Stormy Seas: The Looming Dockworkers' Strike and Its Rippling Impact

The impending dockworkers' strike, set to commence on Tuesday, poses a significant threat to the nation's supply chain, potentially disrupting the availability of a wide range of products, from shoes and car parts to alcohol and certain foods. The strike, which could "cripple" the economy according to the International Longshoremen's Association (ILA) President Harold Daggett, arises from contract negotiation disputes between dockworkers and the United States Maritime Alliance (USMX).

Bracing for the Storm: The Looming Disruption in the Supply Chain

Fruits, Chocolate, and Alcohol: The Perishable Casualties

The strike's impact will be particularly felt across the East and Gulf coasts, where nine major ports account for more than 90% of all East Coast containerized agricultural exports. This includes a wide range of products, from animal feed to refrigerated meat. While some manufacturers have stockpiled goods in preparation, the agricultural sector, with its perishable items, may not have had the same luxury. Consumers can expect to see shortages and delays on bananas, cherries, canned food, hot peppers, and chocolate, all of which are heavily imported. Additionally, the U.S. may experience problems in the reverse, with soybean farmers and poultry producers facing domestic oversupply if they are unable to sell their products overseas.

Stepping on Toes: The Footwear and Apparel Industry's Woes

The American Apparel and Footwear Association, which imports more than 50% of its U.S. apparel, footwear, and accessories along the East and Gulf ports, is among the retailers that have expressed concern. The potential disruption during the peak holiday shipping season could lead to a scarcity of goods, with the remaining products becoming increasingly costly for American families. The impact extends beyond just the apparel and footwear industry, with the American Home Furnishings Alliance, Fashion Accessories Shippers Association, and Florida Retail Federation also voicing their concerns.

Automotive Aftermarket: A Roadblock to Repair and Maintenance

The autocare industry, which heavily relies on the East and Gulf Coast ports, is also bracing for the impact of the strike. More than a quarter of all automotive parts were imported through the affected ports last year, and the disruption could make it difficult for repair shops and distributors to meet the demand for certain products and parts. This not only poses a challenge for the industry but also puts the nearly 300 million Americans who drive at risk, as access to service and repair of their vehicles diminishes.

Congestion and Escalating Costs: The Ripple Effect

While some companies have attempted to divert their goods to West Coast ports in anticipation of the strike, these ports are also being overburdened, leading to congestion and delays. Additionally, the cost of shipping goods has risen, meaning consumers will likely see an increase in the prices of products. The strike's impact is not limited to the East and Gulf coasts, as the disruption in the supply chain will be felt nationwide, affecting businesses and consumers alike.

A Call for Intervention: Seeking a Timely Resolution

Recognizing the gravity of the situation, 53 organizations representing manufacturers, farmers, retailers, and more have written a letter to President Joe Biden, urging him to help facilitate negotiations between the USMX and the ILA. The letter emphasizes that just one day of striking can lead to five days of backlog, underscoring the urgency of reaching a fair agreement that respects workers and ensures the uninterrupted flow of commerce through the nation's ports.As the clock ticks, the nation braces for the potential impact of the dockworkers' strike, which could reverberate across multiple industries and disrupt the lives of countless Americans. The call for swift action and a resolution that balances the needs of workers and the broader economy has never been more pressing.