Walmart, Ikea and Home Depot are among the big retailers that will be hardest hit by the strikes that are paralyzing East Coast ports.
Longshore workers who have closed 36 ports from Maine to Texas will cost the U.S. economy billions of dollars and cause goods shortages and price increases within days, experts warn.
Retailers account for about half of all container shipping volume.
Many of the big players rushed to ship Halloween and Christmas products early to avoid strike-related disruptions, incurring additional costs to ship and store those products.
But shortages are still expected, from bananas and other fresh produce in a few days to beers, wines and spirits, and also toys and Christmas products if they last longer.
Retail giant Walmart is the largest importer through the affected ports, typically bringing in nearly 48,000 containers a year. Each can hold up to 28 tons of weight, according to UPS.
Longshore workers at ports from Maine to Texas began picketing early Tuesday in a strike over wages and automation that could reignite inflation and lead to product shortages.
Experts say banyan trees will be hardest hit by the attacks, along with other fresh fruits from South America and the Caribbean.
Ikea is the second largest with 42,900 containers and Samsung – which has its own stores but also sells through telephone operators – the third with 33,800.
Bob’s Discount Furniture and Home Depot round out the top five importers.
Dollar General, Amazon, Folgers and Raymours Furniture import thousands of containers a year across the East Coast.
Outside of retailers, the big brands affected are Continental Tire, Hyundai, General Motors, Goodyear, Michelin, Heineken and Pepsi.
All are among the top 20 importers, according to Import Genius.
Empty shelves have not been seen in the United States since the post-pandemic supply chain collapse in 2021.
The strike, which began on Monday night, will first affect imports of perishable products such as bananas, and then avocados, pineapples and fruit juices.
Beer, wine and spirits will also face challenges due to their perishable nature.
If the strike lasts more than a few weeks, a work stoppage could lead to higher prices and delays for a wide range of products reaching homes and businesses.
Some products could arrive late for the peak holiday shopping season, which could affect delivery of anything from toys and artificial Christmas trees to cars, coffee and fruit.
The International Longshoremen’s Association is demanding a pay rise of around 77 percent over six years for its 45,000 striking members. For union members at a typical rate, their salary would go from $81,120 to about $143,520.
Brian Pacula, West Monroe supply chain partner, noted that bananas are the product that will be most affected by the current disruptions.
Ports affected by the strike handle 3.8 million metric tons of bananas each year, or 75 percent of the national supply, according to the American Farm Bureau Federation.
Jason Miller, a professor of supply chain management at Michigan State University, identified other perishable products at risk, including dates, figs, pineapples, avocados and more than 80 percent of fruit juices.
Jefferies analysts say European manufacturers will be hit harder than their Asian counterparts.
FILE – Containers move at the Port of New York and New Jersey in Elizabeth, New Jersey, June 30, 2021. (AP Photo/Seth Wenig, File)
Midnight longshoremen strike at the Bayport terminal on Tuesday, October 1, 2024 in Houston. (AP Photo/Annie Mulligan)
Philadelphia longshoremen gathered outside the Packer Avenue Marine Terminal port begin striking as their contract expires at midnight Tuesday, Oct. 1, 2024. (AP Photo/Ryan Collerd)
In particular, European toy makers such as Playmobil and Lego rely predominantly on eastern US ports. Rivals like Jakks and Funko matter across the West Coast.
The strike will also create traffic jams at West Coast ports, where workers are represented by a different union.
Railroads say they can increase their capacity to transport more freight from the West Coast, but analysts say they can’t move enough to compensate for the closed ports in the east.
JP Morgan estimated that a strike closing East and Gulf Coast ports could cost the economy between $3.8 billion and $4.5 billion per day, with some of that amount recovered over time after normal operations resume. .
Retail expert Neil Saunders of Global Data told DailyMail.om that the strike will cause two main problems: shoppers will face higher prices and empty shelves.
The International Longshoremen’s Association is demanding a wage increase of around 77 percent over six years.
They also want a complete ban on the automation of cranes, doors and trucks to move containers used in loading or unloading goods at 36 US ports.
The contract expires Tuesday between the International Longshoremen’s Association and the United States Maritime Alliance, which represents ports.
The two sides have not held negotiations since June. The strike by ILA workers is the union’s first since 1977.