Longshoremen in Georgia go on strike; what it could mean for consumers

ATLANTA – A dockworker strike has closed ports along the East Coast, including major hubs in Georgia. The work stoppage, which began earlier this week, threatens to snarl supply chains and, if prolonged, could lead to product shortages and higher prices for consumers.

Ports from Maine to Texas closed as 45,000 members of the International Longshoremen’s Association (ILA) walked off the job, impacting operations at 36 major ports. These include the Port of Savannah and the Port of Brunswick, two of the busiest ports in the country. Cargo ships will be unable to dock and the disruption could have a significant impact on the flow of goods to and from the United States.

What a port strike means for the supply chain

“Nothing goes on ships and nothing comes out,” said Tom Smith, an economist and finance professor at Emory University’s Goizueta Business School. “Many of these ports, including the Port of Savannah, are the largest export port in the United States.”

The immediate impact of the strike is expected to be limited, but experts warn that supply chain disruptions could worsen if the work stoppage lasts longer than a few weeks.

“There’s a chance we’ll see a few less products in stores,” Smith said. “But if the strike lasts longer than a few weeks, there could be disruptions in the supply chains for certain goods. Everything would be delayed because nothing would come from the ships.”

Sina Golara, an assistant professor of supply chain management at Georgia State University, echoed Smith’s concerns. “The first impact will be delays,” Golara said. “A delay will lead to shortages, shortages will lead to rising prices, and then consumers will be frustrated trying to find their products.”

Golara pointed out that the automotive industry, pharmaceuticals, food and clothing could be among the sectors most affected by the strike. However, he stressed that the strike is not expected to impact the distribution of relief supplies following Hurricane Helene, as critical supplies are already stored and accessible on land.

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Demands of dock workers

Despite the potential for disruption, both experts believe the long-term impact of the strike will depend on how quickly negotiations can resume. As the holiday shopping season approaches, companies may feel pressure to resolve the dispute sooner rather than later.

“Companies would pass on their cost increases to consumers,” Golara said, adding that additional pressure on the supply chain could spill over to other parts of the economy.

Smith added that the impact would not be universal: “We will not see a blanket increase in all products, only those that rely on imports from certain parts of the world.”

This is the first longshoremen’s strike since 1977. The union is demanding better wages and a ban on automation, which they say endangers jobs. Negotiations between the ILA and shipping companies stalled in mid-July, and President Joe Biden said he would not intervene to prevent the strike.