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Which products could be affected by a lengthy port strike? Alcohol, bananas and seafood, to name a few

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Which products could be affected by a lengthy port strike? Alcohol, bananas and seafood, to name a few

The strike could cause one of the greatest supply chain disruptions since COVID-19, making a plethora of products scarce on store shelves and upending holiday shopping for millions of Americans.

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Consumers may soon notice that it’s harder to find products like bananas, electronics and *gasp* booze, now that dockworkers at ports from Maine to Texas are officially on strike.

As of Tuesday, 36 East and Gulf coast ports have shut down as 45,000 union workers walked off the job after labor negotiations stalled between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX). The first ILA strike since 1977 could become one of the greatest supply chain disruptions since COVID-19, making a plethora of crucial products scarce on store shelves and upending holiday shopping for millions of Americans.

What’s more, the strike is projected to not only cost the economy up to $5 billion a day, but may prove devastating to both small and medium-sized businesses and could also boost prices for voters already frustrated with housing and food inflation, experts told USA TODAY.

“Any strike that lasts more than one week could cause goods shortages for the holidays,” Eric Clark, portfolio manager at Accuvest Global Advisors, told USA TODAY. “We could get the kind of inflation for six months similar to or worse than peak inflation levels a year ago.”

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

What products should consumers stock up on?

Because about half of all U.S. ocean imports flow through the ports, consumers may end up facing higher prices and shortages again, Chris Tang, distinguished professor at the University of California, Los Angeles who specializes in supply chain management, told USA TODAY.

Items that may experience shortages and higher prices include:

  • Seafood: Perishable products like cod from Iceland or Canada and shrimp from Thailand and Ecuador aren’t easily transported by train because they need to be refrigerated, Tang said.
  • Electronics: Cell phones and computers, which now come from southeast Asian nations like Vietnam, Indonesia, and Thailand instead of China, are routed through East Coast ports, Tang said.
  • Pharmaceuticals: Although these are easier to ship via air, consumers may still notice drug shortages if negotiations can’t be settled within about a month, Tang said.
  • Cars and auto parts: European cars shipped via container and auto parts often pass through East Coast and Gulf Coast ports. In fact, the Port of Baltimore, Maryland, leads the nation in car shipments, according to experts.
  • Machinery parts: The East Coast ports surpass others in the U.S. in shipments of machinery, fabricated steel and precision instruments, according to S&P Global Market Intelligence.
  • Alcohol: Wine, beer and spirits imported from Europe, South America or the Caribbean may take a hit. Fortunately, American drinkers have plenty of domestic options.
  • Bananas: About 75% of the nation’s bananas enter through East Coast and Gulf Coast ports, said Jason Miller, interim chair of Michigan State University’s department of supply chain management. Moreover, because the fruit is perishable, it’s not economical for them to be shipped on planes, Miller wrote in a LinkedIn post.

Will holiday shopping be affected?

Americans may also soon struggle to complete their holiday shopping.

Because of the strike’s impending supply chain disruption, consumers may have a tough time finding the toys and other gifts for their children they are looking for in the weeks and months ahead.

While large corporations like Walmart and Costco can afford to take inventories early and store them – or absorb the cost of rerouting shipments to the West Coast – smaller businesses typically can’t, experts have said.

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

If holiday shopping disruptions are to be avoided, the clock is ticking.

“Any strike that lasts more than one week could cause goods shortages for the holidays,” said Eric Clark, portfolio manager of the Rational Dynamic Brands Fund.

How else could the strike hit farmers, small businesses, 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 amid pleas for help from retail, agriculture, commerce, auto care, toy and other groups.

Meanwhile, businesses that sell products to international markets stand to take a major hit, experts said. For example, agricultural exporters of soybeans and poultry won’t be able to send their goods overseas and are poised to lose money because their goods are perishable.

On the employment front, companies facing parts shortages may resort to keeping lean inventories and, to keep costs low, might have to shut down assembly lines amid a prolonged strike, experts told USA TODAY. As a result, Americans may face furloughs and job losses at a time when the job market is already cooling.

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