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Which products could be affected by the port strike? What to stock up on

Which products could be affected by the port strike? What to stock up on
Posted on | Posted on angela

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

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Consumers may soon notice that it is more difficult to find products like bananas, electronics, etc *gasp* Alcohol, now that longshoremen are officially on strike at ports from Maine to Texas.

As of Tuesday, 36 ports on the East and Gulf Coasts were closed as 45,000 union workers walked off the job after collective bargaining 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 biggest supply chain disruptions since COVID-19, leaving a plethora of essential products in short supply on shelves and upending holiday shopping for millions of Americans.

Furthermore, the strike is not only expected to cost the economy up to $5 billion per day, but could also prove devastating to small and medium-sized businesses and also drive up prices for voters already reeling from real estate. and food inflation are frustrated, experts told USA TODAY.

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

Here's what consumers should know about how the strike could impact their daily and holiday shopping plans:

Which products should consumers stock up on?

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

Items that may experience shortages and higher prices include:

  • seafood: Perishable products such as cod from Iceland or Canada and shrimp from Thailand and Ecuador cannot be easily transported by train because they need to be refrigerated, Tang said.
  • electronics: Mobile phones and computers now coming from Southeast Asian countries such as Vietnam, Indonesia and Thailand instead of China are being routed through East Coast ports, Tang said.
  • drug: Even if they are easier to ship by air, consumers may still experience a drug shortage if negotiations cannot be completed within about a month, Tang said.
  • Cars and car parts: European cars and auto parts shipped by container often pass through ports on the East and Gulf Coasts. The Port of Baltimore, Maryland, is the nation's leader in auto shipping, experts say.
  • Machine parts: East Coast ports outperform others in the U.S. in shipping machinery, manufactured steel and precision instruments, according to S&P Global Market Intelligence.
  • 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.
  • Bananas: About 75% of the country's bananas come through ports on the East and Gulf Coasts, said Jason Miller, interim director of Michigan State University's supply chain management department. Because the fruit is perishable, it is not economical to transport it by plane, Miller wrote in a LinkedIn post.

Will Christmas shopping be affected?

Americans could also soon have difficulty doing their Christmas shopping.

With the threat of supply chain disruption caused by the strike, consumers may find it difficult to find the toys and other gifts they are looking for for their children in the coming weeks and months.

While large companies like Walmart and Costco can afford to capture and store inventory ahead of time — or absorb the costs of redirecting shipments to the West Coast — smaller companies typically can't do that, experts say.

As a result, “some businesses could miss out on essential holiday supplies entirely,” Ben Johnston, chief operating officer at small business lender Kapitus, told USA TODAY. “A strike of this nature could mean the difference between a profit or a loss for the year.”

If you want to avoid interruptions in your Christmas shopping, the clock is ticking.

“Any strike that lasts longer than a week could lead to stock shortages for the holidays,” said Eric Clark, portfolio manager at 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 force ports to reopen by seeking a court injunction against a strike to allow both parties to continue negotiations . Instead, White House officials encouraged ongoing discussions and sought help from retail, agriculture, trade, auto care, toy and other groups.

Meanwhile, companies that sell their products in international markets are likely to suffer a big hit, experts said. For example, agricultural exporters of soybeans and poultry will be unable to ship their goods abroad and face losing money because their goods are perishable.

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

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