U.S. grocery stores could soon be running out of bananas and expensive imported cherries after longshoremen strike for the first time in nearly half a century at major ports on the East Coast and Gulf Coast. That’s because both fruits are among more than 100 food categories that rely on businesses that are currently closed, and car shipments are also expected to be delayed due to the labor dispute.
The extent to which U.S. consumers and the U.S. economy will be affected by the strike, which immediately disrupts ports that handle about half of the nation’s cargo container trade, will depend on the duration of the work stoppage, but it is currently in its first day. It becomes.
“We should start to see shortages within a couple of weeks,” Andrew Coggins, a clinical professor of business administration and management science at Pace University’s Lupine School of Business, told CBS MoneyWatch. “This is a big problem, especially when used over long periods of time, because many of the things we use on a daily basis are exposed to water or at least some parts at some point in their lives. “Because it’s carried by,” Coggins said. Said.
The impact on U.S. consumers will not be felt immediately, as companies have learned how to maintain backup supplies during the pandemic. “Previously, we relied heavily on just-in-time logistics. Then because of the coronavirus, goods were not arriving just-in-time from places like China, and longshore workers were getting sick, so everything was delayed. ” he pointed out.
According to the American Farm Federation, more than 75% of U.S. bananas arrive at ports managed by the International Longshoremen’s Association (ILA). In addition to perishable fruit, almost 90% of imported cherries, 85% of canned food, 82% of chili peppers and 80% of chocolate that arrive by water carriers are unloaded from containers at the port, the report said.
New York Gov. Cathy Hochul warned of a potential banana shortage Monday at a press conference at the Port Authority’s headquarters, saying, “I don’t want to be in a position where I can say, ‘Yes, we don’t have bananas,’ but there’s a possibility that that will happen.” There is,” he said. point. ”
Hochul said much of the state’s food supplies are shipped by truck or rail from upstate, other states or from Canada and Mexico, and medicines are flown in.
But the auto industry could feel the impact more directly, with Hochul warning potential buyers to call ahead.
“If you’re planning on getting a new car this week, you might want to check with your dealer. For example, your new car might not arrive in the next few weeks,” she warned.
Beverages are also at risk of shortages or price hikes, with 80% of imported beer, wine, whiskey and scotch and 60% of rum arriving at East Coast and Gulf Coast ports, the Agriculture Department said.
Retailers and importers of non-agricultural goods were rushing shipments in preparation for the strike, and some ships were diverted to West Coast ports where workers were not on strike.
“The products we export and Walmart will definitely be affected,” Coggins said. Some foreign goods may be rerouted to Mexico and shipped by rail or truck, he noted.
The strike also poses problems for U.S. farmers and U.S. agricultural exports, and could lead to a glut of U.S. goods at home.
“About 14% (by volume) of all U.S. water-based agricultural exports would be at risk,” said Daniel Munk, an economist at the U.S. Farm Bureau. “In one week, the potential value of disrupted containerized agricultural exports is estimated at $318 million.”