What will the port workers' strike mean for consumers, small businesses, farmers?
The International Longshoreman's Association has gone on strike as of Oct. 1 at ports along the East and Gulf Coast, including in Wilmington.
The work stoppage comes after a long dispute between the union and port operator group The United States Maritime Alliance, over wages and increasing automation. This is the first ILA strike in nearly 50 years.
“We are prepared to fight as long as necessary, to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve," said ILA president Harold Daggett in a statement on the union's Facebook page.
Ports from Maine to Texas have ground to a halt with 45,000 dock workers on strike. If the strike continues into the holiday season, the national supply chain could see a major squeeze.
How will the International Longshoreman's Association strike impact consumers?
Consumers may begin to see higher prices and shortages of some goods if the strike isn't resolved soon.
Any strike lasting more than a few days will likely trickle down to consumers, but small- and medium-sized businesses and exporters, especially farmers, could feel the squeeze even sooner amid rising costs and product shortages, experts said.
The East Coast ports bring in most of the country's banana imports. Specifically, the Port Wilmington brings in the most bananas of any port in North America.
According to a LinkedIn post by Michigan State University's Jason Miller, banana stock could get critically low.
"There is 0 chance of shifting all these imports through the West Coast, and the low dollar value per unit of weight for bananas means putting them on planes isn’t economical," Miller wrote. "Moreover, you can’t frontload a perishable product."
Wilmington and Baltimore are two important ports in the automobile supply chain. Half of the nation's automobile imports come through the East and Gulf ports, and that moving these logistics to the West Coast "isn't feasible."
What other goods will be impacted the most by the International Longshoreman's Association strike?
Seafood, like cod fish from Iceland or Canada and shrimp from Thailand and Ecuador. “Those aren’t as easy to transport by train because they’re refrigerated and perishable," UCLA professor and supply chain expert Chris Tang told USA TODAY on Friday.
Electronics, like cellphones and computers, now come from Southeast Asian nations like Vietnam, Indonesia and Thailand instead of China and are routed through East Coast ports, according to Tang.
Pharmaceuticals. Though air shipping is possible, drug shortages may result if negotiations can’t be settled within a month or so, Tang said.
Machinery parts. East Coast ports surpass others in the U.S. in shipments of machinery, fabricated steel and precision instruments, according to S&P Global Market Intelligence.
Imported wine and liquor. Imported wine and spirits come largely from Europe, and flow through East Coast ports. Distributors began bracing for the strike before it happened, according to Frank Pagliaro of Wilmington-based FranksWine. "It’s already started with suppliers," Pagliaro wrote Monday, "letting us know to stock up for the holidays as there may be potential shortages."
How will small businesses be affected by the ILA strike?
Small businesses power more than 40% of economic activity, according to the Small Business Administration.
The “strike poses severe consequences for the U.S. economy, particularly for small businesses,” said Javier Palomarez, president and chief executive of the United States Hispanic Business Council. “If a solution is not found soon, small businesses will be facing one of the greatest supply chain disruptions since COVID-19, and many do not currently have the resources to do so.”
What effect will the ILA strike have on farmers?
About 14%, by volume, of all U.S. waterborne agricultural exports would be affected, according to the American Farm Bureau Federation. It values those exports at around $318 million per week.
More on the strike:Port of Wilmington cargo is shut down by the first East Coast strike in 47 years
Products that would feel the greatest hit, according to the AFBF, include:
Poultry: Nearly 80% of waterborne poultry exports would be jeopardized, lowering prices for poultry producers as they lose vital market access, it said. Nearly half of East Coast containerized poultry exports pass through the Port of Savannah. The drop in poultry exports would trickle down to feed suppliers, especially those producing corn and soymeal, it said.
Soybeans: “Cutting off this vital outlet for producers is particularly biting when soybean producers are expected to harvest a record crop,” wrote AFBF economist Daniel Munch. “Soybean producers near Norfolk, Virginia — which handles over 60% of East Coast containerized soybean exports — could feel the greatest impact.”
Hay
Cotton
Red meat
Vegetables
Dairy products
Edible nuts