“I will cripple you” – Stark warning we should all be prepped for because we’re on our own

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As if our world isn’t mad enough right now, we’re now going to have to cope with a shutdown of many of our ports, from today.

Starting today, nearly 50,000 members of the International Longshoremen’s Association (ILA) initiated a strike across the East and Gulf Coasts of the United States over the implementation of automation in the process. Their six-year contracts are up for renewal and they are pissed that the port authorities have implemented automation while expressly promising they wouldn’t in the current contract. Harold Daggett explains in the video below that they also want recompense for their work during the lockdowns.

This action has impacted operations at 36 ports, representing a significant portion of U.S. cargo handling. The strike follows the expiration of their contract and revolves around demands for higher wages and concerns over automation, among other issues.

This strike marks the first major port strike on these coasts since 1977, potentially leading to economic disruptions including increased prices and shortages of various goods.

Since we abandoned onshore manufacturing to the siren lure of globalization we will swiftly discover that everyday essentials will dry up fast. Maybe as soon as the end of the week for fresh produce such as bananas.

Hopefully, as readers of this blog, you are all stocked up but maybe your circumstances have changed recently and you need to review your needs. We have a new kid in the house – diapers (Pampers are made here but do include some imported ingredients), wipes etc. come from overseas. Senior hygiene products, also. This house runs on Dunkin’ so we’re going to get lots of coffee today.

No savings?

This type of strike will hit people on fixed incomes with no savings. Now is the time to get out and work that clearance rack at the supermarket with whatever money you can find, to get cans of soup, veggies or beans on sale, to check out the twofer deals. Hit the dollar store for hygiene and bathroom essentials before they vanish. Fill the car with gas and be very sparing in its use. Public transit might be useful if you have access to it. Water is an issue in some places. Buy it now. If you can access drinkable water, fill your own bottles and label them with the date.

Buy bleach and washing soda – cheap cleaning products they are very useful in emergencies.

As you will hear in this video, the unions are citing Taft-Hartley. President Biden won’t intervene in the potential dockworkers’ strike, which could disrupt 36 ports and cost the U.S. economy up to $5 billion daily. Though urged by industry groups to mediate, Biden encourages negotiation without using the Taft-Hartley Act, which could impose an 80-day cooling-off period (aka Go-slow on full pay period). The White House supports talks to avoid disruption, focusing on monitoring supply chain effects.

Shortages anticipated

The East and Gulf coasts, which handle nearly half of the U.S. containerized cargo, will have significant impact on supply chains. Here’s a general overview based on typical supply chain dynamics:

  • Fresh Produce: Items like bananas, cherries, and other perishable fruits and vegetables might be among the first to see supply shortages. These goods often have a short shelf life. For instance, bananas, with 1.2 million metric tons flowing through these ports annually and virtually all consumed bananas in the U.S. being imported, could see noticeable shortages relatively quickly if the strike lasts more than a few days.
  • Beverages: Imported beer, wine, and spirits could also be affected relatively early due to their reliance on these ports for a significant portion of their imports. However, existing stockpiles might mitigate immediate shortages for a short strike duration.
  • Automotive Parts: Given that many auto parts are imported, their availability could be next in line, especially if the strike prolongs. This might not affect immediate consumer access to new vehicles but could impact production lines and repair services, leading to longer-term effects if the strike lasts weeks.
  • General Retail Goods: For items like toys, clothes, and electronics, the impact would depend on how much stock retailers have already brought in for the holiday season. Retailers might have stocked up in anticipation, but extended strikes could deplete these reserves, affecting availability by mid to late October if not sooner.
  • Duration of Supplies:
    • Short Term (Few Days to a Week): Fresh produce, especially highly perishable items, would likely run out first. Beverages might follow if distributors haven’t stockpiled sufficiently.
    • Medium Term (Weeks): Automotive parts, certain electronics, and other consumer goods might start showing shortages, especially items with just-in-time inventory management.
    • Long Term (Months): If the strike lasts into November or beyond, virtually all imported goods through these ports could see significant disruptions, affecting everything from daily consumer products to industrial supplies.

Considerations:

  • Pre-Strike Preparations: Many companies might have already ramped up inventory or rerouted shipments via West Coast ports or other means, which could delay the onset of shortages.
  • Market Adjustments: The market might also see a surge in buying as consumers and businesses stock up, potentially accelerating the depletion of existing stocks but also signaling when shortages might become critical.