As U.S. shipping ports from Maine to Texas prepare for a possible strike, consumers are starting to stock up on essential supplies as experts warn the shipping industry conflict could cause price hikes and shortages of everyday items.
“If there’s a strike, prices in the supermarkets will go up higher than ever,” said Gristedes and D’Agostino Supermarkets CEO and Chairman John Catsimatidis Monday.
“I wasn’t prepared because I didn’t know [about the strike], but now that I do, I’ll investigate. I’ll look into it,” said one woman Friday at a New York City Gristedes store. “I would stock up as much, not ridiculously, but at least try to get a few more items to have just in case.”
“Yes, I am [worried],” another shopper said. “It’s hard to be able to make ends meet as it is. It’s going to be even worse.”
International Longshoremen’s Association unionized dockworkers, representing 45,000 members at Gulf Coast and East Coast ports, may go on strike starting October 1 if an agreement isn’t reached by Monday.
The two sides of the labor dispute have been at a standstill over issues including port automation and wages. A strike would likely have a domino effect on truck and rail cargo, availability, storage, and food supply.
“You have the Suez Canal closed down, the Red Sea is closed down. If you have a strike on the East Coast, that’s going to be closed down. Guess what? Prices are going to go to the moon,” warned Catsimatidis.
Another shopper said they “haven’t had any trouble” so far stocking up on essentials; however, they plan to “keep an eye on what’s going on.”
A fourth shopper said they’ll “probably most likely stock up” to avoid possible inventory shortages like those seen during the Covid-19 pandemic but purchase things “day by day.”
“I’ve been so busy I haven’t been [adjusting my shopping habits], but if I hadn’t been busy, I’d probably be shopping in Westchester and bringing the food down here because it’s much cheaper up there,” said one of the shoppers. “The prices are already so high, I feel, because of the current administration, and I think it’s just going to get worse.”
J.P. Morgan analysis estimates a strike would cost the U.S. economy billions
A J.P. Morgan analysis estimated that a strike would cost the American economy as much as $5 billion daily. Catsimatidis argued that the optics couldn’t look worse for the Biden-Harris administration and Harris-Walz campaign.
“This is not going to be very good for Vice President Harris because she’s depending on lower prices. Well, guess what? There is no price gouging if prices will go higher than ever,” said the grocery giant.
“Where is this administration?” he questioned. “Prices will go higher than ever. [Biden] should put a halt on it ’til at least after the election.”
