From Walmart and Ikea to Heineken, here are the companies whose imports may be most impacted by the port strike
By Jordan Hart,
1 days ago
The port workers' strike could disrupt business for big retailers, according to ImportGenius data.
Walmart, Ikea and Samsung are some of the biggest importers at ports affected, the data show.
JPMorgan predicted the strike could cost the US up to $5 billion daily.
Major retailers are pivoting their shipping plans and preparing for the financial impact of the ongoing port strike .
Each day that dockworkers and maritime workers aren't moving along cargo, companies that import goods at the East and Gulf Coast ports will experience disruptions to supply chains.
Alan Murphy, the CEO of the liner research firm Sea-Intelligence, said on CNBC on Tuesday that if the strike lasts more than a month, it will tip the US into a recession . It's unclear how long it will go on, but even a week of delays would present challenges to global corporations.
The retail companies who are heavily exposed — those that import the most at the affected ports — are a mix of big box stores, furniture sellers, and some phone makers, according to data from ImportGenius, which Arbor Research and Trading, a fixed-income research and brokerage firm, compiled into a chart. Walmart and Ikea are the most exposed, the data show.
William George, director of research at ImportGenius, told Business Insider that the firm pulled Bills of Lading (essentially receipts) from US Customs to determine the companies.
The chart doesn't include data from shipping companies that handle cargo from multiple businesses or anonymous shipments.
Business Insider reached out to all the companies named. A spokesperson for General Motors said the company has "contingency plans in place" as it monitors the situation.
"We prepare for unforeseen disruptions in our supply chain and maintain additional sources of supply to ensure we have key products available for our customers when and how they want them," a Walmart spokesperson said.
Home Depot tapped Jess Dankert, vice president of supply chain at the Retail Industry Leaders Association, to provide insight into how the strikes could impact retail giants.
"In most cases, retailers activated their supply chain contingency plans in advance of the strike, rerouting shipments to the West Coast or moving shipment dates up to avoid significant delays," Dankert said.
Bob's Discount Furniture declined to provide a statement; the rest of the companies didn't comment to BI.
JPMorgan analysts estimated that the strike could cost the US up to $5 billion a day. Ultimately, it's consumers who will pay the price.
Some of the products that experts say could be affected are perishable food, tires, salt, and liquor.
Until the International Longshoremen's Association can reach a contract deal for higher wages and more benefits with employers, ports from Maine to Texas will continue to have costly disruptions.
"It is critical for the parties to reach an agreement and reopen the gateways that handle roughly half of US imports and exports," Dankert told BI.
Won’t miss IKEA. Put enough of that stuff together. If one was completed, there was another one coming through the door for one of the kids. No wonder, thats why they drink so much alcohol over there.
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