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East Coast ports could shut down if roughly 45,000 dockworkers go through with plans for a strike, delaying the delivery of goods to retailers and potentially resulting in higher prices along with delays. Here's what you need to know.
There are a few reasons. The International Longshoremen’s Association is asking for a significant pay bump and a ban on the automation of cranes, gates, and container-moving trucks. An existing contract expires between the International Longshoremen’s Association and the United States Maritime Alliance on Tuesday. The two sides haven’t held negotiations since June. But this, if a strike happens, would be the first by the ILA since 1977, according to the Associated Press.
Not all, but there are a few that handle specific goods you may want. Autos come through Baltimore and Brunswick, Georgia. Philadelphia prioritizes fruits and vegetables. New Orleans deals with coffee from South America and Southeast Asia, as well as various chemicals from Mexico and North Europe, and wood products such as plywood from Asia and South America.
President Biden can stop the strike by implementing the 1947 Taft-Hartley Act, but, having been pro-union throughout his career, he has already said he won't.
If the strike happens, but is resolved in a few weeks, not much. But if a strike lasts for more than a month, expect shortages of some products. Don't worry about your Christmas list, though, as most holiday items have already arrived. Still, there might be an uptick on the prices of everything from fruit to cars.
While many retailers anticipated a strike and started shipping their goods to U.S. distribution centers in June, they're incurring extra warehouse costs to store goods longer. Plus, replenishing stock may be harder, so maybe buy things you may want now instead of later.
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