STORY: A potential strike at East and Gulf Coast ports is already wreaking havoc on American businesses, as three dozen ports employing 45,000 workers could close as soon as Oct. 1.
Many shipping lines are now trying to import early, move goods to the West Coast and even put cargo on expensive flights to get ahead of the potential strike.
The dispute between the International Longshoremen’s Association union and the United States Maritime Alliance employer group is over pay, with current contract terms set to expire at midnight on September 30.
As a result, companies like DSW’s parent designer brands have been forced to come up with workarounds, as the fashion company normally routes about 20% of its shoe imports through the East Coast.
According to its supplier manager, it has now moved about half of those goods to the West Coast, paying ten times more than a regular ocean transit to fly in a small shipment of leather boots and dress shoes from Brazil.
As well as causing corporate headaches, the threatened strike could also disrupt supply chains and revive inflation ahead of the US presidential election, while putting a deeper dent in the US labor market – as it would be the second major US strike, alongside Boeing’s ongoing dispute. .