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Consumer goods are most likely to be affected by the port strike

Consumer goods are most likely to be affected by the port strike

  • US longshoremen are on strike after their contracts expired on Monday evening.
  • The work stoppage at East and Gulf Coast locations will impact a variety of consumer products.
  • Here you will find an overview of the items that could be most affected.

U.S. longshoremen with the International Longshoremen's Association are on strike after their union's contract expired Monday night.

In the latest development in the ongoing labor dispute, the work stoppage at factories on the East and Gulf Coasts is expected to impact a variety of consumer products.

According to The Conference Board, Atlantic ports handle more than half of U.S. imports, with an estimated economic impact of $540 million per day.

While some companies have managed to operate ahead of the looming deadline by expediting deliveries or routing to West Coast ports, others are in a more difficult position.

A variety of everyday objects could be affected

Fresh fruits and vegetables, particularly from Central and South America, are expected to be hit hardest by the strike, said Margaret Kidd, program manager and associate professor of supply chain and logistics at the University of Houston.

At the top of the list: bananas and mangoes.

“Grocery stores and others in the supply chain don't have a lot of inventory because they don't want it to expire,” Brian Pacula, supply chain partner at consulting firm West Monroe, told Business Insider about bananas.

Tim Ryan, a Florida importer who supplies grocers like Walmart, told the Wall Street Journal he had to fly in asparagus from Peru, which he would normally transport through the Port of Miami.

Other foods and beverages, including beer, wine and spirits, could also be affected due to their perishable nature, Pacula said.

Analysts at Jefferies expect European manufacturers to face more disruption than brands that ship from Asia. This is bad news for toy manufacturers like Playmobil and Lego as well as for Ravensburger puzzle solvers.

Pacula said durable goods like furniture and tires could also get stuck at ports because there is less urgency to reroute them because they are non-perishable. Pacula said Continental Tire, Michelin and Goodyear are all top importers through ports on the East and Gulf Coasts.

In addition to tires, there could also be shortages of other auto parts in the coming days, two supply chain experts said, particularly in supply chains from Europe or related to secondary markets such as car servicing and manufacturing.

When the Port of Baltimore closed after the Dali ship destroyed the Francis Scott Key Bridge, the largest entry point for imported cars into the United States was closed. Baltimore is also an important location for importing sugar and gypsum, commonly used in construction and agriculture.

Meanwhile, parts of the East Coast are still reeling from Hurricane Helene, which is expected to further slow the movement of goods across the United States.

Michael Yamartino, CEO of post-purchase company Route, said smaller companies that don't have large inventories or the luxury of forward planning, as well as companies that deal with complex products, will most likely be hit hardest.

Three experts said there was a high chance the strike could impact holiday shopping and shipping, with less than two months left until Black Friday.

Chris Butler, CEO of National Tree Company, a leading online seller of holiday decorations, said even if precautions were taken, an estimated 15% of the company's goods would be stranded due to a strike.

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