The following is a report from USA TODAY.
Americans could face high prices and shortages again this holiday season but this time, it would be because of a worker strike instead of a global pandemic.
As of Thursday, the International Longshoremen’s Association (ILA) said labor talks with the United States Maritime Alliance (USMX) remain at a standstill, and about 45,000 of its union workers at 36 East coast and Gulf Coast ports are ready to walk on Oct. 1 for the first time since 1977.
A strike could lead to shortages of certain items and boost prices for voters already frustrated with housing and food inflation, experts said. The ports handle about half of U.S. ocean imports, including food, clothing, auto parts, cars shipped via container and holiday toys, experts said.
“A supply chain disruption would undoubtedly lead to price increases across the board and would impact consumers’ ability to find the toys they are looking for in the weeks and months ahead,” said Greg Ahearn, president and chief executive of The Toy Association.
Diversification didn’t work
After clogged post-pandemic ports on the West Coast kept more than 150 container ships waiting to dock in February 2022, according to the Department of Transportation, companies began shipping more of their wares through the East Coast and Gulf Coast ports, experts said.
Simultaneously, to cut their reliance on China, which was slow to reopen and faced more intense government scrutiny after the pandemic, companies began sourcing from different countries, especially southeast Asia, said Chris Tang, distinguished professor at the University of California, Los Angeles who specializes in supply chain management.
Many companies shipping goods from southeast Asia use East Coast ports because they’re closer, he said.
“Because of these changing dynamics, the East Coast (strike) impact is more pronounced,” Tang said.
Read the full story by Medora Lee at USA TODAY here.
