Dockworkers’ strike could cause spike in prices: Authorities ask shoppers not to ‘panic shop’
Almost 50,000 dockworkers have gone on strike at East and Gulf Coast ports of the United States. The strike could lead to shortages and price spikes.
Around 50,000 port workers went on strike at East and Gulf Coast ports of the country, halting the flow of products to and from the United States.
Members of the International Longshoremen’s Association are holding the work stoppage due what they view as the deterioration of labor conditions, including disagreements about increased wages and the use of automated machines that threaten the workers’ job security.
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The union is also demanding that they share in the profits that their labor generates and are enjoyed by the transportation and shipping companies.
The strike affects 36 ports across the U.S., from Maine to Texas, and would come with serious economic repercussions, as it would halt the delivery of 40% of products the country imports and exports. It could add up to a cost of billions of dollars a day.
There could be a shortage of perishable items like bananas and cherries; imported products like wine, beer, and liquor; as well as goods like furniture, clothing, and European cars.
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Dockworkers’ strike could cause spike in prices: Authorities ask shoppers not to ‘panic shop’
Americans should be ready for an impending increase in prices as companies could eventually pass on the cost of the work stoppage onto consumers. However, the U.S. Department of Agriculture says there is no cause for panic at the moment.
The government agency says shoppers should not expect big changes in the availability of food products or their prices in the immediate future.
However, fruits and vegetables that usually pass through the affected ports might be more difficult to find as soon as next week, and it’s also possible that grocery stores could increase their prices.