David Nicholas, CEO of Nicholas Wealth Management, explains how the port strike could affect Barney & Co.'s stock market and the broader economy.
A longshoremen's union strike that began early Tuesday has affected dozens of U.S. ports and prompted shipping giant FedEx to launch a contingency plan aimed at minimizing shipping disruptions. It became.
“We are leveraging our vast network capabilities and supply chain expertise to activate our contingency plans and provide support to those affected by this situation,” a FedEx spokesperson told FOX Business. ” he said. “Our top priority is to maintain the excellent service our customers expect, and the FedEx team is ready to help.”
FedEx has launched a contingency plan in response to the longshoremen's union strike affecting multiple U.S. ports. (Reuters/Charles Platiaux/Reuters Photo)
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| FDX | fedex corporation | 273.68 | +6.13 |
+2.29% |
The spokesperson added that customers with questions about their packages or who wish to have their packages shipped by air cargo are urged to visit the company's website or contact a FedEx sales representative. .
Longshoremen who formed a union Strikes were held after midnight at 36 ports on the Eastern and Gulf Coast as negotiations over a new contract with groups representing port employers stalled.
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The International Longshoremen's Association (ILA), which represents 45,000 longshoremen, has launched its first strike since 1977 after signing a six-year contract with the United States Maritime Alliance (USMX). port employerexpired Monday night.
Negotiations between the ILA and USMX have so far stalled over the union's demands for higher wages, compensation and protection from port automation.
Port employers and unionized longshore workers remain at an impasse, unable to reach a new contract agreement. (Ilya Nouberge/Bloomberg via Getty Images/Getty Images)
U.S. seaports from Maine to Texas will be affected by the attack. These ports collectively handle about half. Imported from the US It is also an important hub for exports from American companies.
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Imports of automobiles, auto parts, agricultural products such as bananas, machinery, processed steel products, furniture, and apparel will be affected. East Port and Bay Port It also handles a significant portion of exported automobiles and auto parts, pharmaceuticals, beef, pork, poultry, eggs, timber, plastics, and other products and merchandise.
The longshoremen's strike will affect eastern and Gulf Coast ports. (Photographer: Michael Nagle/Bloomberg via Getty Images / Getty Images)
A JPMorgan analysis estimates that a strike by longshoremen on the East Coast and Gulf Coast could cost the U.S. economy between $3.8 billion and $4.5 billion per day of disruption.
But Anderson Economic Group (AEG), which specializes in estimating the economic impact, expects the total cost of the strike to be much lower at $2.1 billion in the first week.
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Still, AEG Principal and CEO Patrick Anderson told FOX Business that JPMorgan analysts believe the duration of the strike will likely depend on whether the Biden administration intervenes. He said he agreed.
FOX Business' Eric Revell contributed to this report.
