East Coast Dockworkers Strike: What It Means for Your Business
The national dockworkers strike at East Coast and Gulf Coast ports is sending alarm bells off. The thought of its damaging effects on the U.S. supply chain is a grim prospect. An estimated 45,000 union workers have gone on strike amid pay negotiations at an impasse and disagreements about automation. Experts predict significant disruptions.
Immediate Consequences
This would be the first such strike since 1977 and could cost the economy up to $5 billion a day. First among the casualty list of this strike would include perishable goods, including fresh and frozen foods, causing shortages on store shelves. Supply chain expert Amir Mousavian says the longer the strike lasts, the worse it will be in terms of availability and price.
Higher Costs and Exposed Supply Chain
While large retailers might lay-up stocks, many small and medium-scale enterprises will not have the facility to maintain stocks in the face of increased shipping costs. Accordingly, some retail giants have already taken steps to ensure that they are prepared, though their smaller competitors may not be capable of dealing with any disruptions caused by consumers.
The National Association of Manufacturers is urging President Biden to intervene, but thus far, the president has not used his power to break up the impasse. Meanwhile, the U.S. Maritime Alliance has proposed a significant wage hike, but talks are still at an impasse.
Preparing for the Impact
For NEPA Wholesale's situation, know and be prepared would be the watchwords. Here is something you can do:
Check Your Inventory: Be certain you are stocked up on the most essential items.
Consider stocking up ahead of time: You can stock up on many inventories before the strike will affect the chain.
Keep your finger on the pulse: Keep an eye out in the news for developments which may impact shipping and pricing.
At NEPA Wholesale, we want to keep you aware of what is going on regarding this situation and help your business find its way through this.