Georgia dockworkers now on strike; what it could mean for consumers

ATLANTA - A strike by dockworkers has shut down ports along the East Coast, including major hubs in Georgia. The work stoppage, which began earlier this week, threatens to snarl supply chains and could result in product shortages and higher prices for consumers if it drags on.  

Ports from Maine to Texas have been shut down as 45,000 members of the International Longshoremen's Association (ILA) walked off the job, affecting operations at 36 major ports. Among these are the Port of Savannah and the Port of Brunswick, two of the busiest ports in the country. Cargo ships are unable to dock, and the disruption could have a significant impact on the flow of goods into and out of the United States. 

What a port strike means to the supply chain

"Nothing is going onto ships, and nothing is coming off," said Tom Smith, an economist and finance professor at Emory University’s Goizueta Business School. "A lot of these ports, including the Port of Savannah, is the largest exporting port in the United States." 

The immediate impact of the strike is expected to be limited, but experts warn that if the work stoppage extends beyond a few weeks, supply chain disruptions could worsen. 

"It’s a possibility we could see a few less products in the stores," said Smith. "But if the strike extends beyond a few weeks, we could see snarls in supply chains for certain goods. Everything would be delayed because nothing is coming off the ships." 

Sina Golara, an assistant professor of supply chain management at Georgia State University, echoed Smith’s concerns. "The first impact will be delays," Golara said. "A delay causes shortages, shortages cause prices to go up, and then consumers will be frustrated trying to find their products." 

Golara noted that the auto industry, pharmaceuticals, food, and apparel could be among the sectors most affected by the strike. However, he emphasized that the strike is not expected to affect the distribution of relief supplies in the wake of Hurricane Helene, as critical supplies are already stored on land and are accessible. 

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Dockworker's demands

Despite the potential for disruption, both experts believe the strike’s long-term impact will depend on how quickly negotiations can resume. With the holiday shopping season approaching, businesses could feel the pressure to resolve the dispute sooner rather than later.  

"Businesses would pass on their cost increases to the consumer," Golara said, adding that extra pressure on the supply chain could spill over to other parts of the economy. 

Smith added that the impact would not be universal: "We won’t see a blanket increase on all products, just those that depend on imports from certain parts of the world." 

This is the first longshoreman strike since 1977. The union is demanding better pay and a ban on automation, which it argues threatens jobs. Negotiations between the ILA and shipping companies stalled in mid-July, and President Joe Biden has stated that he will not intervene to prevent the strike.