- US port workers are on strike after their labor contract expired on Monday night.
- The work stoppage at East and Gulf Coast facilities is set to affect a host of consumer products.
- Here is a summary of the items that may be most affected.
US dock workers with the International Longshoremen’s Association are on strike after their union’s contract expired Monday night.
In the latest development in the ongoing labor dispute, the work stoppage at East and Gulf Coast facilities is expected to affect a host of consumer products.
Atlantic ports handle more than half of U.S. imports, with an estimated economic impact of $540 million a day, according to the Conference Board.
While some companies have managed to work ahead of the looming deadline, expediting shipments or heading to West Coast ports, others are in a tighter spot.
Experts say a wide range of everyday items can be affected.
Perishable food
Fresh fruits and vegetables, especially those coming from Central and South America, are expected to be most affected by the strike, said Margaret Kidd, a program manager and associate professor of supply chain and logistics at the University of Houston.
Top of the list: bananas and mangoes.
“Grocers and others in the supply chain aren’t holding a lot of inventory because they don’t want it to expire,” Brian Pacula, a supply chain partner at consulting firm West Monroe, told Business Insider of bananas.
Three-quarters of America’s banana imports this year arrived through eastern ports, according to an analysis of Census data by Jason Miller, a professor of supply chain management at Michigan State University.
Other perishables Miller identified were dates, figs, pineapples and avocados, as well as more than 80% of fruit juices.
Tim Ryan, a Florida importer who supplies foods including to Walmart, told The Wall Street Journal that he had to fly asparagus from Peru that would normally come through the port of Miami.
Beer, wine and spirits
Other food and beverage goods, including beer, wine and spirits, may also be affected due to their perishable nature, Pacula said.
According to Miller’s analysis, three-quarters of US wine imports arrive via eastern ports.
Overall, European manufacturers are expected to face more disruption than brands that ship from Asia, according to analysts at Jefferies.
Toys, tires and other durable goods
In particular, Jefferies analysts noted that European toy makers like Playmobil and Lego, as well as Ravensburger puzzles, use Eastern US ports almost exclusively, while competitors like Jakks and Funko arrive on the West Coast.
Durable goods like furniture and tires — which have less urgency to be redirected because they don’t perish — can also get stuck at ports, Pacula said. He noted that Continental Tire, Michelin and Goodyear are all major importers through East Coast and Gulf ports.
Two supply chain experts said that in addition to tires, shortages of other auto parts could plague consumers in the coming days, especially those coming from Europe or related to secondary markets such as car maintenance and manufacturing.
And when the Port of Baltimore was shut down after the Dali ship hit the Francis Scott Key Bridge, it shut down the largest point of entry for imported cars into the US.
Raw goods
Nearly 1.2 million tons of salt — or roughly 90% of total U.S. import volume — have arrived through Eastern ports this year so far, according to Miller’s analysis.
Baltimore is also a key import location for sugar and gypsum, which is commonly used in construction and agriculture. In addition, the port is a major export hub for coal and heavy agricultural equipment.
Many experts estimate that each day’s amount of waste will take up to a week to be completely cleaned up.
A perfect storm
Meanwhile, parts of the East Coast are still reeling from Hurricane Helene, which is expected to further slow freight across the US.
Beyond the devastation so far, hurricane season remains in full force in the Gulf and Atlantic through November.
While most large retailers have the capacity to pull shipments ahead, Michael Yamartino, CEO of the company behind the acquisition Route, said smaller businesses without large inventories or the luxury of planning ahead would likely be hit hardest.
Three experts said that with less than two months until Black Friday, the likelihood that the strike could affect holiday shopping and shipping was high.
Chris Butler, CEO of National Tree Company, a leading online retailer of Christmas decorations, said that even with precautions in place, about 15% of the company’s merchandise would be stranded in the middle of a strike.