Port Workers’ Strike May Lead to Supply Chain Disruptions in Pennsylvania Grocery Stores
Economic experts are increasingly worried about the implications of the ongoing International Longshoremen Association strike, which could affect consumers nationwide, including those in Pennsylvania, if the strike persists.
Nearly 50,000 port workers have been striking for a second day, seeking higher wages and a ban on automated equipment used in freight unloading. The strike has resulted in a complete halt at 14 major ports along the East and Gulf Coasts, marking the first mass shutdown of these ports in nearly 50 years since workers walked off the job at midnight on October 1.
Brent Moritz, an Associate Professor of Supply Chain Management at Penn State University, explained that the repercussions of these shutdowns could start being felt as soon as two weeks into the strike, given that a significant portion of U.S. imports flows through these ports. “It’s very difficult to reroute these kinds of operations,” Moritz noted. “For example, the Port of Wilmington handles about 75% of the banana imports in the U.S. There aren’t other ports readily equipped to manage the specialized refrigerated needs of those products.”
The strike will also quickly impact the supply of fresh fruits like cherries, grapes, and citrus. Should the strike extend, the repercussions could ripple through various industries; approximately 20% of vehicle imports and exports transit through the Port of Baltimore. If the ports remain closed for an extended period, the U.S. might experience shortages of vehicles and spare parts, reminiscent of the supply chain issues seen during the COVID-19 pandemic, particularly regarding European car brands.
Beyond economic concerns, the strike could incite political action and influence voter sentiment ahead of the upcoming presidential election. If an agreement is not reached between the Longshoremen and the United States Maritime Alliance, which represents the major shipping lines affected, the Biden-Harris Administration may need to intervene using the Taft-Hartley Act, which could restrict union powers and compel an end to the strike. However, President Joe Biden has indicated that he currently has no plans to take such action.
Moritz commented, “If it lasts more than about two or three weeks, there will be immense pressure on both sides to reach a mutual agreement—whether that pressure comes from the Biden administration or from the companies and suppliers involved.”
While the strike introduces uncertainty for various sectors, experts believe it will not significantly impact holiday shopping. Most retailers have already stocked their shelves for Black Friday and the holiday season, with the majority of goods already in the U.S. “The retailers have planned ahead. Most of those holiday goods are already in stores, so it’s unlikely that Christmas shopping will be heavily affected,” Moritz said.
Contract negotiations are ongoing, but it remains uncertain whether the workers’ demands will be met to bring the strike to an end. The last similar strike occurred in 1977 and lasted for 12 days.
