Longshore workers in Texas demand fair wages and a ban on automation

Imports

With about half of U.S. sea imports passing through East and Gulf Coast ports, a wide range of products are affected, including fruits and vegetables, automobiles, auto and machinery parts, clothing, pharmaceuticals, wine and spirits, and holiday items Toys and seafood. said experts.

“Any strike that lasts longer than a week could lead to stock shortages for the holidays,” said Eric Clark, portfolio manager at Rational Dynamic Brands Fund. “Retailers are currently idling, so inventory will be depleted and shipping and merchandise prices will rise vertically for a period of time. We could have six months of inflation that is similar to, or even worse than, peak inflation a year ago.”

Small and medium-sized businesses could suffer the most, some said.

“Large companies with dedicated procurement departments and significant access to capital have been preparing for this strike for some time, and many have ordered excess materials that they were able to finance with cheaper debt,” said Ben Johnston, chief operating officer at small business lender Kapitus.

“However, small businesses have been less likely to be able to order early and in bulk, and are less likely to raise the capital required to order larger quantities of supplies in advance,” he said.