A dockworkers strike at ports across the country could pose delays to the U.S. supply chain, experts say.
The strike — which has shut down 14 ports along the East and Gulf coasts on Tuesday, Oct. 1 — comes after labor talks between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) hit an impasse, according to CBS News.
With about 25,000 workers affected, hubs such as Philadelphia, Baltimore and New Orleans have been shut down, meaning the flow of goods through the areas has ground to a halt, the Associated Press reported.
“First and foremost, we can expect delays to market,” Mark Baxa, president of the Council of Supply Chain Management Professionals, told the AP. “And those delays depend on really what the commodities are and priorities at the ports and how quickly things move.”
Among the items that could result in supply disruptions are cars, fruits and vegetables, and coffee, the AP reports.
Brunswick, Ga., and Baltimore are two of the country’s busiest auto ports, while New Orleans handles coffee from South America and Southeast Asia, chemicals from Mexico and North Europe and wood products from Asia and South America.
Additionally, the supply of wine, beer and liquor could be impacted, per CNN.
Brian Pacula, a supply-chain partner at a consulting firm, warned Business Insiderthat furniture and tires, which are not perishable so would not be as urgently rerouted, run a risk of being stuck at ports.
Meanwhile, in separate interviews with The Wall Street Journal and The New York Times, importers shared that they were considering flying certain fruits and vegetables in, which would raise costs for them, and at the grocery store.
The strike is the first such work stoppage in 47 years, and is already causing congestion in maritime routes near Savannah, Ga., due to Hurricane Helene’s impact, CNBCreported.
A strike of longer than one month could cause a shortage of items, experts said, but they also acknowledged that many holiday retail goods have already arrived stateside.
“A disruption of a week or two will create some backlogs but the broader consequences will be minimal outside of a handful of very port-reliant areas, including Savannah,” Adam Kamins, economist at Moody’s Analytics, told CNBC. “But anything longer will lead to shortages and upward price pressures.”
