VIRGINIA, USA — The longshoremen strike has shuttered operations at 36 ports up and down the East Coast since early Tuesday morning and threatens the flow of goods and materials everyday Americans need.
According to data from the Port of Virginia’s latest Annual Comprehensive Financial Report, more than $108 billion worth of goods in 2023.
The U.S. Department of Agriculture said in the short-term consumers in Hampton Roads and nationwide should not see any significant changes to food availability or prices.
That is owing to the fact that many retailers stocked up on goods ahead of time, including groceries and holiday gift items.
But again, that is just in the short term.
However, economists warn if the strike lasts a month, or longer consumers will feel the economic impacts.
“If all the East Coast and the Gulf Coast ports are closed, businesses will be bringing things in from the West Coast which will cause more congestion there,” said Rhee Bros, Inc. Vice President of Financial Planning Analysis, Kevin Rhee, “and you have to transport that all the way across the country. Ultimately, what that means is higher cost for consumers.”
The Port of Virginia is responsible for nearly 16% of all port activity on the East Coast; only ports in New York and Savannah, Georgia move more product.
Last year, the Port of Virginia’s top two imports were nuclear reactors and electrical machinery, big players in both the infrastructure and military sectors.
The other top 10 imports are more so vital for everyday consumers.
Virginia's third largest import is pharmaceutical products, followed by vehicles and furniture. The tenth most valuable import is toys, games, and sports equipment.
According to a report from the Associated Press, most holiday retail goods have already arrived from overseas, so consumers need not worry about holiday gifts this season.
Nevertheless, if the strikes persist for more than a month, shoppers could start to feel a financial pinch, even with contingency plans.
As for impacts from other ports along the East Coast, groceries such as cherries, cocoa, sugar, and bananas could be in short supply if the strike lasts. The ports affected by the strike handle 3.8 million metric tons of bananas each year, or 75% of the nation’s supply, according to the American Farm Bureau Federation.
Most of those products sit in cold storage if they were not unloaded before Monday night.
This is the first time since 1977 that the International Longshoremen’s Association (ILA) union has gone on strike.
Dockworkers walked off the job at midnight, blaming the U.S. Maritime Alliance for allegedly blocking the path toward a contract agreement. But the alliance said the union has not been negotiating in good faith.