According to Reuters, the International Longshoremen Association have announced a decision by workers to strike at East Coast and Gulf Coast ports, from Maine to Texas. These ports represent about half of all goods imported into the US via ocean shipping.
While the majority of lighting industry imports come from Asia through unaffected West Coast ports, there are several ways an East & Gulf Coast port strike could impact the lighting industry. Stopping half of all US ocean shipping imports could severely disrupt the entire US economy before the election and the holidays. Some experts warn it could cost the national economy billions of dollars per day. In addition, not all lighting industry imports come directly from Asia and even a small percentage of necessary parts or finished goods becoming unavailable could have a multiplied impact on the lighting industry’s supply chain.
No contract negotiations are planned before Tuesday / tomorrow. Despite 170 business organizations requesting the White House to intervene to prevent the strike, the Biden Administration has announced that they will not intervene citing believe in collective bargaining.
The most likely impacts of a strike are port congestion, vessel delays and missed shipments, increased shipping costs, inventory challenges and more. A strike would create another round of supply chain disruption and uncertainty.
More information is available here.
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