Chris Speer, president and CEO of the American Trucking Associations, said the longshoreman strike could disrupt major shipping ports on the East Coast, leading to short- and long-term macroeconomic impacts. The impact is being analyzed.
An impending major port strike expected to begin late Tuesday night could have a significant impact on the provision of emergency aid to Hurricane Helen victims.
“We have Southeastern United States“Half of North Carolina, parts of Georgia and southern Virginia are underwater or digging out mud,” American Trucking Associations President and CEO Chris Speer told FOX Business. “These people need help, and now we're closing 36 ports. All the commerce, 46 percent of all agricultural products that go into and out of the eastern half of this country go to East Coast ports. This is not the time to strike. This administration needs to bring these parties to the table and come to an agreement.”
Spear, which transports more than 72% of the nation's cargo by the ton, said it had not held collective bargaining since June and criticized President Biden for saying he would not intervene to stop the strike. The International Longshoremen's Association, the union that represents longshoremen in the United States, said 45,000 members could walk off the job in the middle of the night, and that the large-scale work stoppage would reduce the amount of goods shipped. It warned that about 36 ports on the East Coast and Gulf Coast, which serve half of the total, could be effectively shut down. Enter or leave the country.
Moody's says damage from Hurricane Helen could be up to $34 billion
On September 28, 2024, heavy rains from Hurricane Helen caused record flooding and damage in Asheville, North Carolina. (Melissa Sue Gerrits/Getty Images/Getty Images)
The union accused the United Maritime Alliance of failing to reach an agreement on a pay package by the contract deadline. But the latest attack comes just days after Hurricane Helen battered the southeastern United States with high winds and heavy rain, causing widespread flooding and flooding. killed 120 people. Hundreds of people remain missing as communications have been cut off.
“This is in line with what I've been saying, which is that these people need to buy new goods, rebuild, buy new cars. They also have job opportunities. There are challenges,” Demlovsky, who is executive in residence at the SPS International Studies Center at New York University and a member of FEMA's National Advisory Committee, told Fox News Digital.
“So if this leads to people being furloughed or laid off or stores closing, it's going to create problems for people who are already under financial strain in many ways,” she said of the strike. spoke. “If they don't have the ability to earn money, make a living and rebuild their lives, that could create major problems, especially for U.S. exports that could impact the labor market in agriculture and other key sectors. Yes, if there is a problem with it. And that certainly includes the ability to recover effectively.”
“This is going to put us in polycrisis mode,” Demlovsky said of the impending strike. “We've already started active activity. It's going to be a very busy hurricane season. Helen is going to be very expensive with a massive declaration across multiple states. And this is going to be a very busy hurricane season. It's going to have a huge impact on the ability, because this is almost done.'' ”
He predicted that prices could be higher if hurricane victims have to rebuild their homes or repurchase essentials and vehicles, adding that the largest number of workers at the ports expected to be affected by the strike are Companies that import include Walmart, IKEA, Home Depot, Dollar General, and Hyundai, especially in the auto industry.
Employees and relatives of the Jiffy Food and Liquor Store clean up after Hurricane Helen made landfall in Cedar Key, Florida, on September 28, 2024. (Chandan Khanna/AFP via Getty Images/Getty Images)
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“If you evacuated with just your toothbrush, you'd have to re-buy all of these items. So if you're going to do that, I know all of these places I just mentioned and everyone can go.” Well, then it will probably be empty. Over time, it will be on the shelf and the price will go up,” Demlovsky said. “We're just getting started. Understand inflation. With such a widespread and aggressive response in so many states, this number is likely to rise even further in the event of a port attack. ”
He said residents in areas of North Carolina and Tennessee that experienced inland flooding from Hurricane Helen are likely not as accustomed to stocking up for hurricanes as those affected in Florida and other coastal areas. , noted that these victims are therefore likely to have to stock up. Going out and buying products right away puts additional strain on the supply chain.
Storm damage near Biltmore Village in the aftermath of Hurricane Helen in Asheville, North Carolina, September 28, 2024. (Sean Rayford/Getty Images/Getty Images)
Walmart is already a major leader in hurricane response, having to reroute goods from flooded stores, but Demlovsky said the strike will further complicate the company's operations. “The companies I mentioned have very strong operational recovery plans and training in place, but when you get into a situation like a poly crisis or a perm crisis, it becomes very difficult to survive it, and at some point We have to do something,’” she said. “They're already doing a lot of things in hurricane season, but adding this on top of that makes it even harder. So they're going to have to do a really interesting dance to make sure they continue.” At least to keep it well stocked. ”
Given that the Port of Baltimore is a “roll-on, roll-off port” and a major import area for automobiles, the collapse of Baltimore's Francis Scott Key Bridge has already caused significant strain on the auto industry's supply chain, he said. said. That port hasn't fully recovered either. COVID-19 pandemic And we are facing further changes due to the demand for electric vehicles.
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“This is a very complex time for the supply chain across the auto industry, so this is just another nail in the coffin, making it very difficult,” Demlovsky said.
