The first strike by dockworkers at major East Coast and Gulf ports in nearly half a century could soon lead to shortages of more expensive imported bananas and cherries at U.S. grocery stores. Indeed, both fruits are among more than 100 food categories that rely on now-shuttered operations, with the labor dispute also expected to delay automobile shipments.
The strike’s immediate impact on U.S. consumers and the U.S. economy at ports that handle about half of the nation’s cargo container trade depends on the length of the work stoppage, which is now at its conclusion. first day.
“Within two to three weeks, you should start to see shortages,” Andrew Coggins, clinical professor of management and management sciences at Pace University’s Lupine School of Business, told CBS MoneyWatch. “It’s a big problem, especially if it lasts a long time, because a lot of what we use every day has, at some point in its life, traveled by ship or by water, or at least some components,” he said. Coggins said. said.
The impact on U.S. consumers won’t be immediate, as businesses have learned to maintain backup stocks during the pandemic. “Before, we relied heavily on just-in-time logistics. Then when COVID hit and goods were no longer arriving just in time from China and elsewhere and the longshoremen were sick, everything slowed down.” he noted.
More than 75 percent of U.S. bananas arrive at ports managed by the International Longshore Association, or ILA, according to the American Farm Bureau Federation. Beyond perishable fruits, nearly 90% of imported cherries, 85% of canned food, 82% of hot peppers and 80% of chocolate that arrive by sea are unloaded from containers at these ports, the press release said.
New York State Governor Kathy Hochul warned of possible banana shortages Monday during a press conference at the Port Authority headquarters: “I don’t want to be able to say, ‘Yeah, we don’t have any bananas,’ but we could make it happen.”
Much of the state’s food supply is shipped by truck or train from upstate and other states, or from Canada and Mexico, and pharmaceuticals are flown in, said Hochul.
The auto industry could feel a more immediate impact, however, with Hochul warning potential buyers to call ahead.
“If you’re expecting a new car this week, that might be something you want to check with your dealer. It might not arrive, for example, in the next few weeks,” she said. warned.
Beverages are also likely to be in short supply or subject to price increases, with 80% of beer, wine, whiskey and scotch imported, as well as 60% of rum arriving at East Coast and Gulf ports , noted the agricultural bureau.
Non-agricultural retailers and importers had ramped up shipments in anticipation of the strike, and some ships were diverted to West Coast ports where workers are not among the strikers.
“Our products that we export and Walmart will definitely be impacted,” Coggins said. Some foreign goods could be rerouted to Mexico and shipped by train or truck, he noted.
The strike could also prove a problem for U.S. farmers and U.S. agricultural exports, leading to a glut of U.S.-grown produce at home.
“About 14 percent of all U.S. waterborne agricultural exports, by volume, would be at risk,” wrote American Farm Bureau economist Daniel Munch. “Over a one-week period, the potential value of disrupted containerized agricultural exports is estimated at $318 million.”
