Which products can be affected by a port strike? What to stock up on

The strike could cause one of the biggest supply chain disruptions since COVID-19, leaving a glut of products in short supply on store shelves and disrupting holiday shopping for millions of Americans.

Consumers may soon notice that it is more difficult to find products such as bananas, electronics and other products *gasp* booze, now that longshoremen at ports from Maine to Texas are officially on strike.

As of Tuesday, 36 ports on the East and Gulf Coasts have been closed as 45,000 union workers walked off the job after labor negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) stalled. The first ILA strike since 1977 could become one of the largest supply chain disruptions since COVID-19, leaving a glut of crucial products in short supply on store shelves and disrupting holiday shopping for millions of Americans.

Moreover, the strike is not only expected to cost the economy up to $5 billion a day, but could also be devastating for both small and medium-sized businesses and also drive up prices for voters already frustrated by housing and food inflation, they said. experts to the US. TODAY.

“Any strike that lasts longer than a week could cause shortages of goods for the holidays,” Eric Clark, portfolio manager at Accuvest Global Advisors, told USA TODAY. “We could get six months of inflation similar to or worse than peak inflation levels a year ago.”

Here’s what consumers need to know about how the strike could affect their daily shopping and holiday purchases:

Which products should consumers stock up on?

With about half of all U.S. ocean imports flowing through ports, consumers could again face higher prices and shortages, Chris Tang, a professor at the University of California, Los Angeles who specializes in supply chain management, told USA TODAY.

Items that may be experiencing shortages and higher prices include:

Seafood: Perishable products such as cod from Iceland or Canada and shrimp from Thailand and Ecuador are not easily transported by train because they require refrigeration, Tang said.
ElectronicsMobile phones and computers, which now come from Southeast Asian countries such as Vietnam, Indonesia and Thailand instead of China, are routed through ports on the east coast, Tang said.
Pharmaceutical productsWhile these are easier to ship by air, consumers may still notice drug shortages if negotiations cannot be completed within about a month, Tang said.
Cars and car parts: European cars shipped via containers and auto parts often pass through ports on the East Coast and Gulf Coast. According to experts, the Port of Baltimore, Maryland, leads the nation in auto shipments.
Machine partsAccording to S&P Global Market Intelligence, East Coast ports outpace others in the U.S. in shipments of machinery, fabricated steel and precision instruments.
Alcohol: Wine, beer and spirits imported from Europe, South America or the Caribbean could take a hit. Luckily, American drinkers have plenty of domestic options.
BananasAbout 75% of the country’s bananas arrive through ports on the East Coast and Gulf Coast, said Jason Miller, interim chairman of Michigan State University’s department of supply chain management. Also, because the fruit is perishable, it is not cost-effective to ship it by air, Miller wrote in a LinkedIn post.

Will holiday shopping be affected?

Americans may also soon have trouble completing their holiday shopping.

Due to the strike’s looming supply chain disruption, consumers will have a hard time finding the toys and other gifts they want for their children in the coming weeks and months.

While big companies like Walmart and Costco can afford to stockpile and stockpile early — or absorb the costs of diverting shipments to the West Coast — smaller companies typically can’t, experts say.

As a result, “some businesses could completely miss out on essential holiday supplies,” Ben Johnston, chief operating officer at small business capital provider Kapitus, told USA TODAY. “A strike of this nature could mean the difference between making a profit or suffering an annual loss.”

If we want to avoid disruptions to holiday shopping, the clock is ticking.

“Any strike that lasts longer than a week could cause shortages of goods for the holidays,” said Eric Clark, portfolio manager of the Rational Dynamic Brands Fund.

How else could the strike affect farmers, small businesses and jobs?

The Biden administration has declined to invoke the Taft-Hartley Act, which allows the federal government to reopen ports by seeking an injunction against a strike, allowing both sides to continue negotiations. Instead, White House officials encouraged continued discussions amid pleas for help from retail, agriculture, trade, auto care, toy and other groups.

Meanwhile, companies selling products in international markets are in for a big hit, experts say. For example, agricultural exporters of soybeans and poultry will not be able to send their goods abroad and stand to lose money because their goods are perishable.

On the employment front, companies facing parts shortages may have to resort to holding low inventories and, to keep costs down, may have to close assembly lines during a prolonged strike, experts told USA TODAY. As a result, Americans may face furloughs and job losses at a time when the job market is already cooling.