John Cassimitidis, chairman and CEO of United Refining Company and Red Apple Group, discusses Mr. Biden's non-intervention in the port strike and how it fuels inflation. , explain what will increase the price of food and oil.
An ongoing longshore union strike has shut down several ports on the U.S. East Coast and Gulf Coast for several days, halting trade at the hub that handles about half of U.S. imports in bulk. There is.
Major retailers and business groups have sounded the alarm about the impact of the shutdown on the wider economy, but new data shows that the companies that shipped the most goods to affected ports in the past year It turns out.
On October 1, 2024, longshoremen go on strike at the Bayport Container Terminal in Seabrook, Texas. (Mark Felix/AFP via Getty Images/Getty Images)
Companies that imported the most TEU (Twenty Foot Equivalent Units) into East Coast and Gulf Coast ports from September 2023 to September 2024, according to the latest data from ImportGenius shared with FOX Business on Wednesday night. is as follows:
1. General Motors: 62.6k TEU
General Motors World Headquarters Office at Renaissance Center in Detroit. The Detroit automaker is the largest importer at U.S. ports affected by the longshoremen's strike, according to data from ImportGenius. (Photo by Paul Hennessy/SOPA Images/LightRocket, Getty Images / Getty Images)
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| GM | general motors company | 44.81 | -0.07 |
-0.14% |
2. Walmart: 57.5k TEU
Wal-Mart, the world's largest retailer, imported the second-largest amount of goods into America's East Coast and Gulf ports over the past year, according to data from ImportGenius. (Jakub Porzycki/NurPhoto, Getty Images/Getty Images)
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| WMT | Walmart Co., Ltd. | 80.44 | -0.82 |
-1.02% |
3. LG Electronics: 54.4k TEU
4. Mercedes-Benz: 50,000 TEU
5. IKEA: 43,000 TEU
ImportGenius noted that these are “at least” estimates, and that the actual numbers are almost certainly higher, but that companies can apply to customs to redact personal information from detailed shipping records.
Business groups urge Biden to intervene in port strike
William George, director of research at ImportGenius, told FOX that business vessels are piling up outside the affected ports and what will happen next is whether carriers will be able to go to the West Coast to offload their cargo. said it was a “huge gamble” and it was uncertain how long it would last. In addition to other factors, the strike is likely to continue.
Jessica Dankert, vice president of supply chain at the Retail Industry Leaders Association, considers the impact of the longshoremen's strike on retailers.
George likened the situation to the transportation problems in the Suez Canal and Red Sea crises. That meant carriers had to start rerouting ships as major blockages became apparent, driving up shipping costs.
He points out that paying for additional fuel to move cargo further can add thousands of dollars to the cost of shipping a single container, unlike other analysts focusing on spot rates. said it expects ocean freight rates on affected routes to increase by 20% to 50%.
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.
Prolonged port strike could shake up oil and gas industry, experts say
“What makes this even more complicated is that even if the ship is turned around and takes 15 days to the West Coast, there is no guarantee that it will be allowed to unload in Los Angeles and Long Beach,” George told FOX Business. The Coast has historically respected the picket lines enforced by the ILA on the East Coast.
The Port of Baltimore is considered a longshoreman due to the resignation of the International Longshoremen's Association (ILA) on October 1, 2024 in Baltimore, Maryland. (Photo by Kevin Dietsch/Getty Images/Getty Images)
A JPMorgan analysis estimates that strikes 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 as operations slow.
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.
