Looming Port Strike Threatens to Raise Prices Just In Time for Election Day

The likely first national strike of maritime workers in nearly 50 years couldn’t have come at a more critical time.
With the economy still a top concern for American voters, experts warn that a dockworkers’ strike could have significant implications for an already tight presidential race, especially given its potential to disrupt supply chains and impact consumer prices.
The strike, set to begin on October 1, involves tens of thousands of longshoremen at East and Gulf Coast ports, stretching from Maine to Texas. These ports handle over half of U.S. container imports, moving everything from auto parts and electronics to food and furniture.
At the center of the dispute between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) are two key issues: stronger protections against automation and wages.
Even if the port workers’ strike lasts only a few days or up to a week, experts consulted by Newsweek say it could have serious consequences for Vice President Kamala Harris in her race against former President Donald Trump. This also puts President Joe Biden’s pro-labor stance in the spotlight during a critical election period.
The East and Gulf Coast ports handle a significant portion of U.S. container imports, including essential goods like auto parts, furniture, electronics, and food. If the strike is resolved quickly, its economic impact may be contained, according to experts. However, a prolonged strike could cause major disruptions, leading to shortages in key sectors and driving up prices.
“If this is settled in a couple of days, the impact will be minimal,” said Peter S. Goodman, supply chain expert and author of How the World Ran Out of Everything. “But if it drags on for weeks, then you have a potentially very significant problem.” He explained that beyond finished goods, the strike could delay essential components for manufacturing, such as auto parts, chemicals, and construction materials.
The price of bulky goods like furniture is particularly sensitive to shipping disruptions. “Big, bulky items like furniture are hit harder because fewer items fit in a container, driving up the per-item cost,” said Ryan Petersen, CEO of Flexport. However, he says, the full impact may take longer to be felt.
In contrast, fresh produce, such as bananas from Central and South America, faces more immediate risks due to spoilage during transit delays.
“Fresh fruits and vegetables, especially those coming through these ports, will be impacted quickly,” noted Margaret Kidd, program director of supply chain and logistics at the University of Houston, adding that 75 percent of the nation’s imported bananas arrive through East and Gulf Coast ports.
Americans could also face higher prices as retailers experience a supply squeeze.
“If the strikes go ahead, they will cause enormous delays across the supply chain, creating a ripple effect that could last into 2025 and cause chaos in the industry,” said Jay Dhokia, founder of supply chain management firm Pro3PL.
The potential strike underscores the vulnerabilities in the U.S. supply chain, which has already been tested by the COVID-19 pandemic, natural disasters, and geopolitical conflicts. Retailers have tried to prepare by front-loading inventory ahead of the holiday shopping season.
“Many retailers have already taken steps to mitigate the potential impact of a strike by bringing in products earlier or shifting shipments to the West Coast,” Jonathan Gold, Vice President of Supply Chain and Customs Policy at the National Retail Federation (NRF), told *Newsweek*. “But even a minor disruption would have a negative impact, causing delays at a critical time for both retailers and consumers.”
“One lesson we learned from COVID is the importance of better visibility and planning in the supply chain,” Flexport’s Petersen noted. “Companies need better tools to track shipments and plan for disruptions.”
The coming strike by ILA workers will be the union’s first since 1977. Its timing, just weeks before the election, presents a political dilemma for President Biden.
The administration has the power to intervene under the Taft-Hartley Act, which could impose an 80-day cooling-off period to delay the strike. However, such a move carries political risks, especially for Vice President Harris. Biden has positioned himself as the most pro-labor president in decades, and intervening could anger labor unions, a critical part of his political base.
“Biden has positioned himself as friendly to labor, and using powers like the Taft-Hartley Act to end the strike could anger organized labor,” Goodman explained. However, a prolonged strike that disrupts supply chains and fuels inflation could put Biden and Harris at odds with the broader public.
The strike also comes at a time when inflation, although easing, remains a major concern for voters. Prolonged disruptions at ports could raise prices for key goods, heightening economic anxiety as voters head to the polls.
“Trump could benefit, claiming he would handle things better, while Harris, as the incumbent administration’s candidate, could face backlash over inflation and supply chain issues,” Kidd mentioned. “If the strike drags on, we’ll definitely see short-term inflation, and consumers will feel it.”
Correction 9/30/24, 6:37 p.m. ET: This article was updated to correct Margaret Kidd’s title.