Port strikes 2024: Stores and big brands most affected as dockworkers walk off over 80% pay hike demand

Walmart, Ikea and Home Depot are among the major retailers that will be hardest hit by the strikes crippling East Coast ports.

Dock workers who have closed 36 ports from Maine to Texas will cost the US economy billions of dollars – and cause shortages of goods and price increases within days, experts warn.

Retailers account for about half of all container traffic.

A lot of of major players rushed to purchase Halloween and Christmas items early to avoid strike-related disruptions, adding costs to shipping and storing those goods.

But shortages are still expected — from bananas and other fresh produce in a matter of days to beer, wine and spirits as well as toys and holiday items if they last longer.

Retail giant Walmart is the largest importer through the affected ports, typically bringing in almost 48,000 containers per year. According to UPS, they can each hold up to 28 tons.

Ikea is the second largest with 42,900 containers and Samsung – which has its own stores but also sells through telephone companies – third with 33,800 containers.

Bob’s Discount Furniture and Home Depot round out the top five importers.

Dollar General, Amazon, Folgers and Raymours Furniture all import thousands of containers per year through the East Coast.

Outside of retailers, the major brands affected are Continental Tire, Hyundai, General Motors, Goodyear, Michelin, Heineken and Pepsi.

According to Import Genius, they are all among the twenty largest importers.

Empty shelves haven’t been seen in the US since the post-pandemic supply chain crisis in 2021.

The strike, which started on Monday evening, will first affect imports of perishable products such as bananas, followed by avocados, pineapples and fruit juices.

Beer, wine and spirits will also face challenges due to their perishable nature.

If the strike lasts longer than a few weeks, a work stoppage could lead to higher prices and delays on a wide range of goods reaching households and businesses.

Some goods may arrive late during the peak holiday season, affecting deliveries of everything from toys and artificial Christmas trees to cars, coffee and fruit.

The International Longshoremen’s Association is demanding a pay increase of about 77 percent over six years for its 45,000 striking members. For regular-rate union members, their wages would go from $81,120 to about $143,520.

Brian Pacula, a supply chain partner at West Monroe, pointed to bananas as the product most likely to be affected by the ongoing disruptions.

The ports affected by the strike handle 3.8 million tons of bananas annually, or 75 percent of the U.S. supply, according to the American Farm Bureau Federation.

Jason Miller, a professor of supply chain management at Michigan State University, identified other perishable products at risk, including dates, figs, pineapples, avocados and more than 80 percent of fruit juices.

Jefferies analysts say European manufacturers will be hit harder than their Asian counterparts.

In particular, European toy manufacturers such as Playmobil and Lego are mainly dependent on ports in the eastern US. Rivals like Jakks and Funko import via the West Coast.

The strike will also cause traffic jams at West Coast ports, where workers are represented by another union.

Railroads say they can move more freight from the West Coast, but analysts say they can’t move enough to make up for the closed eastern ports.

JP Morgan estimated that a strike that would close East and Gulf Coast ports could cost the economy $3.8 billion to $4.5 billion per day, some of which could recover over time after normal activities had resumed.

Retail expert Neil Saunders of Global Data told DailyMail.om that the strike will cause two major problems: shoppers will face higher prices and empty shelves.

The International Longshoremen’s Association is calling for a wage increase of about 77 percent over six years.

They also want a total ban on the automation of cranes, gates and trucks for moving containers used to load or unload cargo at 36 U.S. ports.

The contract between the International Longshoremen’s Association and the United States Maritime Alliance, which represents the ports, expires Tuesday.

The two sides have not held negotiations since June. A strike by ILA workers is the union’s first since 1977.