How port strike affects consumers – Telemundo Bay Area 48
A major strike by dockworkers is underway at ports across the country, shutting down dozens of ports along the East and Gulf coasts in a protest over wages and automation that could reignite inflation and cause shortages of goods if it lasts. more than a few weeks.
As of this morning, 36 ports from Maine to Texas were closed after the contract between the ports and about 45,000 members of the International Longshoremen’s Association expired. These ports handle about half of the merchandise shipped to and from the United States.
Workers began picketing the Port of Philadelphia shortly after midnight, walking in a circle at a railroad crossing outside the port and chanting “No jobs without a fair contract.”
The union had message boards on the side of a truck that read: “Automation Hurts Families: ILA Stands Up for Job Protection.”
Local ILA president Boise Butler said workers want a fair contract that doesn’t allow their jobs to be automated.
Shipping companies made billions during the pandemic by charging high prices, he said. “Now we want them to pay. They will,” Butler said.
The strike will likely have an almost immediate impact on supplies of perishable imports such as bananas, for example. The ports affected by the strike handle 3.8 million metric tons of bananas each year, or 75 percent of the nation’s supply, according to the American Farm Bureau Federation.
If the strike lasts more than a few weeks, it could significantly disrupt the country’s supply chain, potentially leading to higher prices and delays in the arrival of goods to homes and businesses. It would force companies to pay shippers for delays and could affect the delivery of everything from toys to artificial Christmas trees, cars, coffee and fruit.
As the strike continues, see what’s at stake, why longshoremen are striking, what products could be affected and more.
The union representing at least 45,000 workers did not reach an agreement on their demands.
MORE EXPENSIVE FRUITS OR VEGETABLES
According to experts, the first thing to be affected will be fresh products such as bananas and fresh seafood, since about 17 billion dollars worth of fresh seafood passes through these ports.
The ports affected by the strike also handle 3.8 million metric tons of bananas each year, or 75 percent of the nation’s supply, according to the American Farm Bureau Federation.
Soy, poultry, raw sugar, rum and more could also be affected, experts said.
“For retailers, East Coast and Gulf ports are a critical part of our consumer electronics, footwear, grocery, canned goods and other products,” said Johnathan Gold, economist at the National Retail Federation.
The inflation report for July and the last few months could open the door for a possible rate cut by the Fed. To see more from Telemundo, visit https://www.nbc.com/networks/telemundo
If it lasts more than a few weeks, a work stoppage will significantly disrupt the country’s supply chain, potentially leading to higher prices and delays in the arrival of goods to homes and businesses.
The strike will force companies to pay shippers for delays and cause delays in the arrival of some products for the peak holiday shopping season, which could affect the delivery of everything from toys or artificial Christmas trees to cars, coffee and fruit .
It could also block exports from East Coast ports and create traffic congestion at West Coast ports, where workers are represented by a different union. Railroads say they can increase capacity to move more freight from the West Coast, but analysts say they can’t move enough to offset the closure of eastern ports.
“If the strikes continue, they will cause massive delays throughout the supply chain, a domino effect that will undoubtedly extend to 2025 and wreak havoc across the industry,” said Jay Dhokia, founder of supply chain management company and Pro3PL logistics.
JP Morgan estimated that a strike closing Eastern and Gulf Coast ports could cost the economy between $3.8 billion and $4.5 billion a day, with some of that amount recouping over time after normal operations resume.
WHICH PORTS ARE AFFECTED
While any port can handle any type of cargo, some ports are specialized in handling cargo for a particular industry. Ports affected by the shutdown include Baltimore and Brunswick, Georgia, the auto industry’s two busiest ports. Philadelphia, which prioritizes fruits and vegetables. and New Orleans, which handles coffee, primarily from South America and Southeast Asia, various chemicals from Mexico and Northern Europe, and wood products such as plywood from Asia and South America.
Other major ports affected include Boston. New York/New Jersey? Norfolk, Virginia; Wilmington, North Carolina; Charleston, South Carolina; Savannah, Georgia; Tampa, Florida? Mobile, Alabama? and Houston.