A strike by longshoremen at more than a dozen locations in the eastern United States threatens to reignite food inflation in the coming weeks, potentially leading to shortages of toys and Christmas trees just as the holiday season begins.
About 45,000 members of the International Longshoremen's Association walked off the job Tuesday and picketed ports from Maine to Texas as management and labor remain at odds over issues such as wages and the threat of automation. .
Experts say the most direct impact could be felt in supermarkets.
“From a consumer perspective, if the strike continues for a few weeks, you'll start to see the impact on grocery stores,” said Larry Gross, supply chain analyst and president of Gross Transportation Consulting in a post. told the paper.
Nearly four-fifths of dates, figs, pineapples and avocados imported into the United States enter striking East Coast ports, said Jason Miller, an associate professor at Michigan State University and a supply chain management expert. It's called coming.
Three out of four bananas imported into the United States and 81% of the coffee brought into the country similarly process through East Coast ports.
A prolonged work stoppage could disrupt the holiday season for millions of Americans, leading to shortages of toys, cars, furniture, alcohol and medicine.
The strike affects many industries and threatens to disrupt global supply chains on a scale similar to that seen during the coronavirus pandemic.
“While no industry will be completely safe from the impact of the ILA suspension, some industries will be hit harder than others,” said Ryan Peter, CEO and founder of U.S. freight forwarder Flexport. Sen said. told Shipping Watch.
Petersen said a one-week strike could result in up to six weeks of waiting time, but longer strikes could have even more dire consequences.
“In the worst-case scenario, if the strike continues for several weeks, it will cause supply chain disruptions similar to those experienced during the coronavirus pandemic, with catastrophic consequences,” he said.
To prepare for the worst, retailers stocked up on goods in the hope that the strike would not last long enough to cause serious damage.
“We are becoming very sensitive to anything that affects global trade and the importation of our products,” Jay Foreman, CEO of toy maker Basic Fun, told the Post. Ta. “We knew this day would come.”
Mr. Foreman said his company, which makes Tonka Trucks, Care Bears, Lincoln Logs and Lite Brites, ships products from warehouses in China, but six months ago he changed the destination of containers to the West Coast.
“Typically, 35% of all shipments come to the East Coast,” Foreman told the Post. “We repurposed everything, even if it cost us some cash, capital or time. We decided not to take any chances.”
“We gave our prices to retailers 10 months in advance, but typically our customers like Walmart don't want to accept mid-cycle price increases…” he said. .
But Forman warned that if the work stoppage dragged on for weeks, the costs would eventually be passed on to shoppers.
The Auto Care Association, which represents the automotive aftermarket industry, said the strike could cost the auto parts industry nearly $340 million a day.
“Every day this strike continues, not only will our industry lose hundreds of millions of dollars in business, but it will also reduce access to vehicle maintenance and repairs, making the approximately 300 million Americans who drive more dangerous on the road. ,” said Bill Hanvey, president and CEO of the Auto Care Association.
Denmark-based shipping company Maersk has announced that from October 21 it will introduce a local port interruption surcharge for all cargo moving to and from its East Cost and Gulf Coast terminals. According to Supply Chain Dive.
“The carriers are doing this to force a resolution,” said Stephen Kepler, co-director of Scopelitis Transportation Consulting.
“They’re saying we need to solve this problem…this is their influence.”
Kepler said if the strike “extends into next week, consumers will begin to notice items missing in the produce aisle and we may see price increases in the coming weeks.”
Chris Butler, CEO of National Tree Company of New Jersey, said even if the strike lasts only a few days, there's still time to take down Christmas trees, transport them to warehouses and prepare them for customers this season. He said there would be.
The ship loaded with wood is heading to New York, but is not expected to arrive until after Tuesday. Mr Butler warned that if the strike continues, most of the trees will have to be stored until next Christmas season.
“It's not an ideal situation by any means,” Butler said.
He said crews began preparing for a possible attack in July.
They expedited shipping as much as possible, but one major retail customer requested an early Christmas tree.
Until recently, factories in China and elsewhere were unable to fill National Tree's remaining orders.
If the strike closes the port until November, about 150,000 Christmas trees could miss out on the peak shopping season, potentially hurting companies such as the National Tree Company.
National Tree has already stockpiled or delivered most of the roughly 2 million artificial trees it sells each year, according to the Associated Press.
But if 150,000 trees get caught in the pipeline, revenue could be lost.
with post wire
