A strike by dockworkers at 36 ports from Maine to Texas, the first in decades, could snarl supply chains and lead to shortages and higher prices if it stretches on for more than a few weeks, according to the Associated Press.
Workers began walking picket lines early today in a strike over wages and automation even though progress had been reported in contract talks. The contract between the ports and about 45,000 members of the International Longshoremen’s Association expired at midnight.
Supply chain experts say consumers won’t see an immediate impact from the strike because most retailers stocked up on goods, moving ahead shipments of holiday gift items. If it lasts more than a few weeks, however, a work stoppage could lead to higher prices and delays in goods reaching households and businesses.
A drawn-out strike will force businesses to pay shippers for delays and cause some goods to arrive late for peak holiday shopping season — potentially impacting delivery of anything from toys and artificial Christmas trees to cars, coffee, and fruit. The strike will likely have an almost immediate impact on supplies of perishable imports like bananas.
It also could snarl exports from East Coast ports and create traffic jams at ports on the West Coast, where workers are represented by a different union. Railroads say they can ramp up to carry more freight from the West Coast, but analysts say they can’t move enough to make up for the closed eastern ports.
J.P. Morgan estimated that a strike that shuts down East and Gulf coast ports could cost the economy $3.8 billion to $4.5 billion per day, with some of that recovered over time after normal operations resume.
