(WTAJ) — Economic experts are now concerned that the International Longshoremen Association strike could have impacts on consumers across the nation, including in Pennsylvania if the strike continues long-term.
Nearly 50,000 port workers are on strike for a second day, demanding higher wages and a ban on automated equipment used in the unloading of freight. The strike caused 14 major ports along the East and Gulf Coasts to come to a complete standstill, the first mass shutdown of these ports in nearly 50 years, after the workers walked off at midnight Oct. 1.
Brent Moritz, Associate Professor of Supply Chain Management for Penn State University, said the impacts of these shutdowns could be felt as early as two weeks from the start of the strike, as the U.S. receives large portions of imports through these ports.
READ MORE: Port workers strike along East and Gulf Coasts “It’s very difficult to reroute these kinds of things. I mentioned the Port of Wilmington handles about 75% of the banana imports in the U.S. There aren’t other ports around that could easily handle the refrigerated specialized needs of those kinds of things as they’re difficult to, difficult to reroute,” Moritz said.
Other items that will be quickly impacted include other fresh fruits like cherries, grapes and citrus. But the longer the strike lasts, the more likely it is that other industries will be impacted with 20% of vehicle imports and exports coming through the Port of Baltimore, according to Moritz. It is possible that if the ports remain shut down long enough, the U.S. could see a shortage on vehicles and spare parts similar to what was experienced during the COVID-19 pandemic, namely on European brand cars.
But the economy is not the only thing potentially impacted by the strike as it could result in political action, impacting how voters feel ahead of the upcoming presidential election.
If an agreement is not reached between the Longshoremen and the United States Maritime Alliance, who represents the major shipping lines and customers affected by the strike, the Biden-Harris Administration could be forced to intervene using the Taft-Hartley Act , which would ultimately restrict the power of the union, forcing them to end the strike.
However, President Joe Biden has said that at this time, he does not plan to do so.
“My sense is if it lasts more than about two or three weeks, there’s going to be immense pressure on both sides to come to a mutual agreement — whether that comes from the Biden administration or that comes through other pressures from their customers and suppliers to come to a mutually satisfactory agreement,” Moritz said.
While the strike has created uncertainty for some industries, one thing experts know won’t be impacted is holiday shopping, with the majority of holiday goods already in stores.
“The retailers have planned for Black Friday and the holiday shopping season. Most of those goods are already in the U.S. and are already there, so it’s probably not going to be impacting Christmas gifts all that much,” Moritz said.
Contract negotiations are underway but it remains unclear if any of the workers’ demands will be met to end the strike. The last time a similar strike happened was in 1977 and that lasted for 12 days.
Copyright 2024 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. For the latest news, weather, sports, and streaming video, head to ABC27.
Local News
