Shelves at numerous stores across the East Coast have been cleared of household items by consumers while port workers of the region are on strike for the first time since 1977, yet business experts are warning shoppers not to panic and overstock.
U.S. ports from Maine to Texas shut down Tuesday when the union representing about 45,000 dockworkers went on strike after the contract between the International Longshoremen’s Association and the United States Maritime Alliance, which represents the ports, expired.
The extended shutdown of the ports has the potential to affect the supply chain and raise the prices of various goods at retailers around the country due to shortages in supplies.
Now, the ILA is asking for a 77% raise in wages and a complete ban on the automation of cranes, gates and container-moving trucks used in loading or unloading freight at 36 U.S. ports. The alliance has offered 50% raises over six years and pledged to keep the limits on automation from the old contract.
Meanwhile, in what is virtually a replay of scenes from the days during the Covid pandemic, social media posts from users in Virginia, New Jersey and other states show photos of vacant shelves where household supplies such as toilet paper and paper towels, are typically stocked.
However, some business experts have warned consumers that panic buying these types of items is not necessary, as products like toilet paper are produced domestically, and the supply of it probably wouldn’t be affected much by the strikes. They’ve also noted the ongoing strike will primarily impact grocery items like bananas, tropical fruit and imported alcohol and spirits. Additionally, imported products such as electronics and car and machinery parts may be impacted.
“Key factor here: don’t panic. Don’t get into the panic because we see a lot of noise and we have to go above the noise,” Dr. Subodha Kumar of the Temple University’s Fox School of Business told ABC7 News.
According to Dr. Kumar, the issue at the ports is costing the supply chain $5 billion per day. For now however, he says prices on imported items should not be altered, but if the strike goes on for more than 3 weeks, we may see increases.
Under the 1947 Taft-Hartley Act, President Joe Biden could seek a court order for an 80-day cooling-off period, which would suspend the strike. Yet, Biden said he would not use the federal act to intervene in a statement released on Tuesday, urging port employers to make a fair offer to the striking longshoremen.
