Brown Bananas, Crowded Ports, Empty Shelves: What To Expect If Major Port Strike Erupts...
Whether you're buying a can of sardines or a screwdriver, getting products to consumers requires that supply chains function well.
The availability of labor is essential in each link of the supply chain. That includes the workers who make sure that your tinned fish and handy tools smoothly journey from their point of origin to where they'll wind up, whether it's a supermarket, hardware store or your front door.
Amazingly, 90% of all internationally traded products are carried by ships at some point. At the height of the COVID-19 pandemic, it was hard not to notice the supply chain disruptions. For U.S. ports, there were many bouts of congestion. Demand for goods that were either more or less popular than they would normally be became volatile. Shortages of truckers and other freight service providers wreaked havoc on land-based and maritime transportation networks.
Consumers became exasperated when they saw all the empty shelves. They endured price spikes for items that were suddenly scarce, such as hand sanitizer, computer equipment and bleach.
I'm a scholar of supply chain management who belongs to a research group that studies ways to make supply chains better able to withstand disruptions. Based on that research, plus what I learned while writing a book about labor and supply chains, I'm concerned about the turmoil that could be around the corner for cargo arriving on ships.
Concerns over pay and technology
The International Longshoremen's Association's six-year contract with the East Coast and Gulf Coast ports will expire on Sept. 30, 2024, at midnight unless the two sides reach an agreement before that deadline. Without a breakthrough, the 45,000 port workers intend to take part in a strike that would paralyze ports from Maine to Texas.
Should they walk off the job, it would be the first such work stoppage for the East Coast ports since 1977.
Labor and management disagree over how much to raise wages, and the union also wants to see limits on the use of automation for cranes, gates and trucks at the ports in the new contract. The union is seeking a 77% increase in pay over the next six years and is concerned that jobs may be lost because of automation.