This Tuesday, what was so feared in recent days happened: port workers on the East Coast and the Gulf carried out their strike in at least 14 ports. This group of people, essential to the United States economy, seeks better wages and a ban on automated machines that take away labor. Just as multimillion-dollar losses are estimated for the country, everything that is macroeconomic also would impact the pocketbook of every American. This is how it would affect you.
Experts believe that if the workers’ strike at East Coast and Gulf ports lasts a week, could cost the country’s economy almost $3.8 billion dollarsaccording to the Conference Board.
As is logical, there would be a shortage of products for consumers and the price could even increase of consumer goods. The impact may feel more serious as we approach the dates of the November and December holidays.
It is estimated that More than 100 food categories would be in short supply and could rise in price in the country’s supermarkets. Bananas and cherries are some of the most affected fruits.
Almost half of the country’s cargo container trade arrives through the affected ports. Approximately 46% of imports that arrive in the United States come through the East Coast and the Gulf and 37% of imports are transported by sea, according to Morgan Stanley.
Specialists suggest that time to resolve the strike is essential so that the impact does not last for months.
“A strike of three to five days will take two weeks to resolve; If it is extended to three weeks, it will be resolved in early January“Daniel Munch, economist at the American Farm Bureau Federation, told CBS MoneyWatch.
The distribution of the food products that would be most affected for the strike in the short term include:
- Seafood
- Coffee
- Fruit
- Vegetables
Consumers and farmers would also feel the hit on export of soybean containers and poultry shipments to other countries.
According to the agricultural office, more than 75% of US bananas reach ports managed by the International Longshoremen’s Association (ILA). In addition to perishable fruit, almost 90% of imported cherries, 85% of canned foods, 82% of hot peppers and 80% of chocolate Those arriving by sea are unloaded from containers at these ports.
Beverages are also at risk of being in short supply or subject to price increases, as 80% of imported beer, wine, whiskey and scotch, as well as 60% of rumarrive at ports on the East and Gulf Coasts, the agricultural bureau said.
The automotive industry would also be one of the most affected.with an almost immediate impact. New York Governor Kathy Hochul warned that you should check with your dealer if you expect to receive a new car this week, because it could take longer than expected.
The strike by the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) officially began Tuesday at 12:01 Eastern Time. A total of 14 ports involving some 25 thousand workers could be affected by the strikeaccording to USMX: Baltimore; Boston; Charleston, South Carolina; Jacksonville, Florida; Miami; Houston; Mobile, Alabama; New Orleans; New York/New Jersey; Norfolk, Virginia; Philadelphia; Savannah, Georgia; Tampa, FL; and Wilmington, Delaware.
The ILA demands wage increases and a complete ban on the use of automated cranes, doors and container trucks to load or unload goods at ports that handle approximately half of the country’s maritime cargo.
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