Q&A: How will U.S. dockworkers strike affect holiday shopping?

A possible strike by a union representing about 45,000 dockworkers could lead to a shutdown of U.S. ports from Maine to Texas starting Tuesday.

Such a disruption could increase prices and cause shortages at retailers just as the holiday shopping season approaches.

“First and foremost, we can expect delays to market. And those delays depend on really what the commodities are and priorities at the ports and how quickly things move,” said Mark Baxa, president of the Council of Supply Chain Management Professionals.

What to Know About the Port Strike

The International Longshoremen’s Association (ILA) is pushing for significantly higher wages and a complete ban on the automation of cranes, gates, and container-moving trucks used in loading and unloading freight at 36 U.S. ports. These ports handle roughly half of the nation’s cargo. The contract between the ILA and the United States Maritime Alliance expires on Tuesday, and the two sides have not negotiated since June. A strike would mark the first by the ILA since 1977.

“The Ocean Carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA Longshore Workers an unacceptable wage package that we reject,” the ILA said in a statement on Monday.

Which ports are affected?

The strike could impact various ports, including Baltimore and Brunswick, Georgia, the busiest auto ports; Philadelphia, prioritizing fruits and vegetables; and New Orleans, which handles coffee, chemicals, and wood products. Other major ports affected include Boston; New York/New Jersey; Norfolk, Virginia; Wilmington, North Carolina; Charleston, South Carolina; Savannah, Georgia; Tampa, Florida; Mobile, Alabama; and Houston.

Can the government intervene?

If deemed a danger to the economy, President Joe Biden could invoke the 1947 Taft-Hartley Act to seek an 80-day cooling-off period, suspending the strike. However, Biden indicated he would not intervene, stating, “Because it’s collective bargaining, I don’t believe in Taft-Hartley.”

How will this affect consumers?

The strike may last weeks or even months. If resolved quickly, consumers might not experience major shortages. However, a prolonged strike could lead to shortages of certain products, though most holiday goods have already arrived from overseas. Shoppers may face higher prices on a range of items.

Are retailers making contingency plans?

Retailers have learned to adapt to disruptions being “the new norm,” according to Rick Haase, owner of Patina gift shops in Minnesota. “The best approach for Patina has been to secure orders early and have the goods in our warehouse,” he said.

Daniel Vasquez, who owns Dynamic Auto Movers in Miami, has increased inventory and expanded partnerships with smaller ports. “This move provides us with an edge — having backup partners in place means we can reroute shipments efficiently if the strike hits hard,” he said.

This article includes reporting from the Associated Press.