How a potential port strike could impact holiday shopping


    U.S. ports from Maine to Texas could shut down Tuesday if a union representing some 45,000 dockworkers carries through with a threatened strike.

    A lengthy shutdown could raise prices on goods around the country and potentially cause shortages and price increases at big and small retailers alike as the holiday shopping season—along with a tight presidential election—approaches.

    “First and foremost, we can expect delays to market. And those delays depend on really what the commodities are and priorities at the ports and how quickly things move,” says Mark Baxa, president of the Council of Supply Chain Management Professionals.

    The International Longshoremen’s Association is demanding significantly higher wages and a total ban on the automation of cranes, gates and container-moving trucks that are used in the loading or unloading of freight at 36 U.S. ports. Those ports handle roughly half of the nations’ cargo from ships.

    The contract expires between the International Longshoremen’s Association and the United States Maritime Alliance, which represents the ports, on Tuesday. The two sides haven’t held negotiations since June. A strike by the ILA workers would be the first by the union since 1977.

    The strike could last weeks—or months. If a strike were resolved within a few weeks, consumers probably wouldn’t notice any major shortages of retail goods. But a strike that persists for more than a month would likely cause a shortage of some consumer products, although most holiday retail goods have already arrived from overseas. Shoppers could see higher prices on a vast array of goods, from fruit and vegetables to cars.

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