by - American dock workers are on strike on Monday evening after their employment contracts expired.
- The work stoppage at East Coast and Gulf Coast facilities will impact a wide range of consumer products.
- Here you will find an overview of the items that may be most affected.
American longshoremen from the International Longshoremen’s Association are on strike Monday evening following the expiration of their union’s contract.
In the latest development of the ongoing labor dispute, the work stoppage at East and Gulf Coast facilities is expected to impact a wide range of consumer products.
Atlantic ports handle more than half of U.S. imports, with an estimated economic impact of $540 million per day, according to The Conference Board.
While some companies have managed to work ahead of the looming deadline, by expediting shipments or routing to West Coast ports, others are in a tighter situation.
A wide range of everyday objects can be affected
Fresh fruits and vegetables, especially those from Central and South America, are expected to be hardest hit by the strike, said Margaret Kidd, program manager and associate professor of supply chain and logistics at the University of Houston.
Top of the list: bananas and mangoes.
“Supermarkets and others in the supply chain don’t have a lot of inventory because they don’t want it to expire,” Brian Pacula, a supply partner at consulting firm West Monroe, told Business Insider of Bananas.
Tim Ryan, a Florida importer who supplies Walmart, among others, told The Wall Street Journal that he has to fly in asparagus from Peru that he would normally bring in through the Port of Miami.
Other food and beverage products, including beer, wine and spirits, could also be affected due to their perishable nature, Pacula said.
European manufacturers are expected to face more disruption than brands shipping from Asia, according to Jefferies analysts. That is bad news for toy makers such as Playmobil and Lego, but also for puzzle solvers from Ravensburger.
Durable goods – where it is less urgent to divert because they are not perishable – such as furniture and tires, can also get stuck at ports, according to Pacula. Continental Tire, Michelin and Goodyear are all top importers through East Coast and Gulf Coast ports, Pacula noted.
Besides tires, shortages of other auto parts could hit consumers in the coming days, two supply chain experts say, especially if they come from Europe or are connected to secondary markets such as car maintenance and manufacturing.
When the Port of Baltimore closed after the Dali ship flattened the Francis Scott Key Bridge, the largest entry point for imported cars into the US was closed. Baltimore is also a major import location for sugar and gypsum, which is often used in construction and agriculture.
Meanwhile, parts of the East Coast are still reeling from Hurricane Helene, which is expected to further slow freight traffic across the US.
Michael Yamartino, CEO of post-purchase company Route, said smaller companies that don’t have large inventories or the luxury of planning ahead, and those that deal with complex products, will likely be hit the hardest.
Three experts said that with less than two months until Black Friday, there is a good chance the strike will impact holiday shopping and shipping.
Chris Butler, CEO of National Tree Company, a leading online retailer of Christmas decorations, said that even if precautions are taken, an estimated 15% of the company’s goods will be stranded during a strike.