East Coast port strike threatens holiday shopping: What consumers need to know

The clock is ticking down to a potential port strike of port workers on the East Coast and Gulf of Mexico, where U.S. consumers could face product shortages and price spikes just ahead of the holiday season.
The U.S. Department of Labor has reached out to the United States Maritime Alliance ahead of the probable port strike, according to the International Longshoremen’s Association.
The Star Advertiser reported that the Department of Labor’s involvement signals the federal government wants to mediate and secure an agreement between the parties.
With negotiations between dockworkers and port operators stalling, and the existing labor contract set to expire on Sept. 30, a strike could begin as early as Oct. 1. This may lead to the closure of some of the busiest ports in the U.S., including the Port of New York and New Jersey, which handles 15,000 to 16,000 unit loads, or TEUs, daily, per Reuters.
According to The New York Times, shipments have been diverted to West Coast ports to avoid potential disruptions caused by the looming East Coast port strike. West Coast dockworkers belong to a different union, which successfully negotiated a new labor contract last year, making those ports more stable for handling cargo.
“Despite those measures — and all the problem-solving skills that supply chain managers developed during the turbulence of recent years — a short strike could lead to significant disruptions. JPMorgan transportation analysts estimate that a strike could cost the economy $5 billion a day, or about 6% of gross domestic product, expressed daily. For each day the ports are shut down, the analysts said, it would take roughly six days to clear the backlog,” per The New York Times.
The New York Times reports that Chris Butler, CEO of the National Tree Company, which specializes in artificial Christmas trees and holiday decorations, shared that his company has taken precautions by bringing in goods early and relying on West Coast ports.
“We’re doing everything we can to mitigate it,” Butler, who is based in northern New Jersey, said. “But there’s only so much you can do when you’re at the mercy of these ports,” per The New York Times.
The potential strike impact not only impacts decor. According to Stephan Lamar, the president of the American Apparel and Footwear Association, over half of the imported apparel, footwear and accessories come through East Coast ports. Despite trying to prepare for the strike, Lamar said there are always last-minute hurdles.
The cargo backups and work disruptions will impact the U.S. and global supply chains’ surging cost of goods, according to Reuters.
“Echoing calls from industry groups representing retailers, manufacturers and farmers, 69 Republicans from the U.S. House of Representatives last week called on the Biden administration to do everything in its power to prevent a port work stoppage that could lead to ‘dire impacts to our supply chains, our economy, and the American consumer,’” per Reuters.
The strike could last anywhere from 24 hours to two weeks.