Dockworker Strike Starts; NJ Shoppers Will Pay The Price, Experts Say

NEW JERSEY — Car parts. Fruits and veggies. Furniture. Beer. These are just a few of the goods that shoppers could soon be seeing a lot less of due to a massive dockworker strike that kicked off Tuesday at cargo ports across the East Coast – including the Port of New York and New Jersey.

The International Longshoremen’s Association (ILA) is striking over a dispute with the U.S. Maritime Alliance (USMX), which represents terminal operators and shipping lines. It’s a work stoppage that spans state lines and is predicted to cause major havoc at 36 major ports, including in New Jersey and New York.

The major sticking points include salaries and automation at the port, which workers claim will put their jobs in jeopardy. Both sides have been posting updates on negotiations on their websites. Read the ILA’s posts here, and the USMX’s posts here.

A prolonged strike would have severe consequences for the Port of New York and New Jersey, whose combined terminals and facilities make it the largest port on the East Coast and the third largest in the nation. It will also have a huge impact on the many local businesses that depend on the port to keep their shelves stocked.

Port officials have been making preparations in case of a strike, and hope to minimize any disruption to the supply chain. But the work stoppage will create a “significant congestion” that is expected to linger after the strike ends. See Related: Here’s The Plan If A Strike Shuts Down The East Coast's Busiest Port

President Joe Biden has said he will not invoke a federal law – the Taft-Hartley Act – in an attempt to break the strike, instead encouraging both sides to keep negotiating in good faith.

Nearly 60 percent of U.S. imports and nearly 10 percent of all global container trade goes through East and Gulf Coast ports. Just one week of a strike could result in about a month of congestion and backlogs, according to global logistics company OEC Group Midwest Region.

In New Jersey, experts weighed in about the potential impact of the strike – and what it could mean for shoppers.

“While we have a very healthy respect for the collective bargaining process, the fact of the matter is the stakes are too high for New Jersey and the rest of the nation to be subject to supply chain shortages, higher prices and delays in goods reaching households and businesses,” said Michele Siekerka, president and CEO of the New Jersey Business & Industry Association.

“Our ports, especially here in New Jersey, are our gateways to goods that make up our way of life every day – from produce to manufacturing products and everything in between,” Siekerka added. “With supply chain backlogs a recent, pandemic-era memory and with inflation only recently coming back down to Earth, now is not the time to force businesses to pay shippers for delays and for goods to arrive late as the holiday shopping season approaches.”

Dan Kennedy, CEO at the NAIOP New Jersey, said it is vital that the East and Gulf Coast port workers strike situation resolves quickly.

"A fully functioning Port of New York and New Jersey is critically important to our state economy and the national supply chain," Kennedy said. "A prolonged work stoppage will have an overwhelmingly negative ripple effect on jobs and New Jersey’s logistics industry as a whole."

SUPPLY CHAIN DISRUPTIONS

Container xChange, an international container shipping company, estimated that the resulting supply chain disruptions could cost the U.S. economy more than $1 billion per day.

Essential goods such as imported retail items, automotive parts and perishables may end up getting stranded at ports – or rerouted at considerable expense. The fallout from a strike would hit industries like retail, automotive and manufacturing the hardest, the company says – especially those that depend on imports from Europe and Asia.

In particular, serious production delays could be coming down the pike for the automotive industry, which relies heavily on timely shipments of parts and components.

Meanwhile, retailers are rushing to secure holiday inventory as the strike coincides with peak shopping season preparations. Companies have been importing early, shifting cargo to the West Coast, and even opting for costly air freight to avoid potential delays.

“For small traders, the consequences could be devastating—skyrocketing costs, container shortages, and delays that might cripple business operations,” said the company’s CEO, Christian Roeloffs.

And yes, that includes holiday-themed merchandise such as clothes, electronics and seasonal items.

“The cost of shipping will skyrocket, and ultimately, it’s the consumer who will bear the brunt—whether they’re buying holiday gifts or essential auto parts,” Roeloffs warned.

• See Related: Port Worker Strike Would Be ‘Severe,’ NJ Congress Candidate Says

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