The impending strike of 45,000 dockworkers that stands to shut down 36 ports from Maine to Texas will force price increases and lead to empty shelves among retail giants with the holiday season approaching, the Daily Mail reported Monday.
The International Longshoremen's Association said its workers, who unanimously voted to strike, will hit the picket lines at 12:01 a.m. on Tuesday, a move that will snarl the country's supply chain. The 36 ports handle half of America's cargo from ships. The ILA is North America's largest longshoremen union.
"First, it will push up costs for retailers and, therefore, prices for consumers," retail expert Neil Saunders of Global Data Second told the Daily Mail. "It could lead to shortages of some products if retailers' stock get stuck in the supply chain. Unfortunately, the strike is at the busiest time of the year for retail, a time when there is not much slack in the system."
The ILA is demanding a pay raise for its workers that amounts to roughly 77% over six years. The union and the United States Maritime Alliance (USMX), which represents the ports, have not held negotiations since June.
Trucking companies and freight operators have been scrambling to move nearly $14 billion in trade — $2.7 billion on Friday alone — from the docks of 14 soon-to-be impacted ports by the end of business Monday, CNBC reported.
"Importers, in coordination with their logistic partners, should try to clear as many of their containers off open terminals where possible to avoid possible delays in acquiring their inventory," OL USA CEO Alan Baer told CNBC.
On Friday, 54,456 20-foot equivalent units arrived at the 14 ports in question, according to CNBC.
"As our data shows, a strike of even a week will block the flow of hundreds of thousands of containers into the U.S.," Michael Kanko, CEO of ImportGenius, told CNBC. "These ports are also a major gateway into the U.S. for refrigerated produce. Time isn't on the side of importers."
The retailers that stand to take the biggest hit are, in order, Walmart, Ikea, Samsung, Bob's Discount Furniture and LG, according to CNBC. Walmart had 47.7K units imported at East Coast and Gulf ports since September 2023, according to CNBC data.
Meanwhile, President Joe Biden could suspend the strike for 80 days by seeking a court order under the Taft-Hartley Act. However, Biden said Sunday he would not intervene in the strike, referencing the 1947 measure: "I don't like it."
Mark Swanson ✉
Mark Swanson, a Newsmax writer and editor, has nearly three decades of experience covering news, culture and politics.
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