How the port strike could impact the holiday season and cause an increase in prices

The International Longshoremen’s Association, a 45,000-strong labor union of dock workers, has gone on strike, choking off ports in the country from Maine to Texas.

The workers are demanding better labor conditions, including higher wages and a ban on automation, which they believe threatens their job security. The agreement between the union and the United States Maritime Alliance, which represents the shipping lines, expired on Tuesday. There is still a wide gap to close between what the union wants and what the alliance is willing to offer.

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How the port strike could impact the holiday season and cause an increase in prices

The strike affects the delivery flow of the country’s imports and exports. It involves the Port of New York and New Jersey, which is the third-largest port in the country in terms of the amount of cargo managed.

If the strike drags on for longer than a few weeks, it could result in a shortage in some consumer and industrial items. This in turn could lead to price increases due to the discrepancy between supply and demand, which would then set back this year’s gains in fighting inflation in the country.

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Holiday shoppers should not panic for the moment, because the prices of those potential gifts might not be affected by the strike. Retailers are usually already prepared with their stocks for the holiday season at this time. Many items are likely to be on-stock and available, enough for a few weeks.

This, however, only applies to products that are non-perishable and can stay in warehouse conditions for long periods of time.

The U.S. Department of Agriculture says food supply and prices shouldn’t be affected in the immediate future. However, this could change if the work stoppage continues for more than a month.