Will ports shutdown hit you in the wallet?
One Bridgeport business is already feeling the impact, as 45,000 dockworkers plan to walk off the job Tuesday morning.
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EDITOR'S NOTE: Dockworkers at ports from Maine to Texas began walking picket lines early Tuesday in a strike over wages and automation that could reignite inflation and cause shortages of goods if it goes on more than a few weeks.
Below is how Connecticut consumers could be impacted:
Consumers across Connecticut are bracing for a new round of rising prices for everything from food to electronics – all thanks to a massive strike that could shut down ports from Maine to Texas. The union representing U.S. dockworkers has signaled that 45,000 members will walk off the job at midnight on Tuesday.
The impact may take weeks to trickle down to consumers, but one business in Bridgeport is already feeling the impact.
ANXIOUSLY WAITING
Inside a non-descript warehouse in Bridgeport’s East End, Colorblends Wholesale Flowerbulbs is filled with 10 million bulbs headed to gardens across the country.
The bulbs are imported from the Netherlands. If ports shut down, it could be the first to feel the impact. All day Monday, Colorblends owner Tim Schipper anxiously waited to see if a shipment of 400,000 bulbs will arrive.
“It’s under the Verrazanno Bridge, and we’re hoping it pulls in before the strike,” he said.
If Colorblend’s shipment is delayed too long, it could mean a $1 million loss.
“You have one window to get it out, get it shipped, and get it delivered. So you can't find other places to plant it; there's not any places left,” Schipper said. “In theory, they could stay out of the ground until December. But the problem is, if it's December, you can't really ship somebody their order in Minnesota or North Dakota.”
DOCKWORKERS’ STRIKE
The coming work stoppage threatens to significantly snarl the nation’s supply chain, potentially leading to higher prices and delays for households and businesses if it drags on for weeks. That’s because the strike by members of the International Longshoremen’s Association could cause 36 ports — which handle roughly half of the goods shipped into and out of the U.S. — to shutter operations.
ILA confirmed over the weekend that its members would hit the picket lines at 12:01 a.m. Tuesday. In a Monday update, the union continued to blame the United States Maritime Alliance, which represents the ports, for continuing to “to block the path” toward an agreement before the contract deadline.
“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,” ILA said in a prepared statement. “ILA longshore workers deserve to be compensated for the important work they do keeping American commerce moving and growing.”
The Associated Press reached out to a USMX spokesperson for comment.
The coming strike by the ILA workers will be the first by the union since 1977. West Coast dockworkers belong to a different union and aren’t involved in the strike.
BARE SHELVES & HIGHER PRICES?
Will a supply chain disruption lead to bare shelves and skyrocketing prices, like back in 2021? Economists say, probably not.
“Initially, it shouldn't have a huge effect,” said Dr. Chris Ball, an economist with Quinnipiac University. “There are surpluses.”
Ball noted that retailers and grocery chains stocked up ahead of the strike, so shelves should mostly stay full. However, perishables like bananas and hard liquor could see immediate shortages.
A longer walkout could mean more expensive cars and electronics, like we saw during the pandemic. But in an election year, Ball thinks the White House will step in before things get bad.
“You would see prices rising again, and I just cannot believe they have the appetite for that,” Ball said. “The political calculus says that they would have to get involved.”
If a strike were deemed a danger to U.S. economic health, President Joe Biden could, under the 1947 Taft-Hartley Act, seek a court order for an 80-day cooling-off period. This would suspend the strike, but Biden has signaled that he will not exercise this power.
During an exchange with reporters on Sunday, Biden said “no” when asked if he planned to intervene in the potential work stoppage.
“Because it’s collective bargaining, I don’t believe in Taft-Hartley,” Biden said referring to a 1947 law that allows the president to intervene in labor disputes that threaten the nation’s health or safety.
