MEMPHIS, Tenn. — More than 45,000 dockworkers went on strike Tuesday, Oct. 1, for the first time in decades as dozens of ports across the East and Gulf coasts went on the picket line against port operators, demanding higher wages and a ban on automation. But this strike could have far more implications for workers and consumers as the holidays inch closer.
"We are just recovering from a worldwide pandemic, and you're gonna put hardships on people again," said Derald, an East Memphis Target shopper.
Derald, like many other shoppers across the country, has already felt the strain coming from inflation and supply chain shortages after the pandemic. After more than 45,000 dockworkers went on strike this morning, he's scared that he will feel that strain even more.
"It's gonna put a tight squeeze on everybody just as it did during COVID because, say, they don't get their contract signed or they don't accept the contract terms, then you'll be putting economic hardships on people," he said.
In all different parts of the country, workers from 36 U.S. ports went on the picket line over wages and a ban on automation. The International Longshoremen's Association, the union representing these workers, said they are looking for a more generous contract between them and the U.S. Maritime Alliance, or USMX. President Biden even weighed in Tuesday, saying that USMX should negotiate a fair contract.
As one of the country's largest inland ports, the international port of Memphis supplies different industries across the Mid-South. Neely Mallory, the president of Mallory Alexander International Logistics, said many retailers have been preparing for the strike.
"I think that most importers knew this has been coming for six months," he said. "They've moved their shipments up early. If you look at the import data, you can see that we were double digits ahead every month in June, July and August, compared to historical numbers."
According to an economist at the University of Arkansas, the most heavily impacted areas are expected to be those dealing with meat, poultry and cotton. Nearly 12 percent of beef exports come from South America, and 4 percent come from the Caribbean. Trade flows will likely be strained because of the strike. Mallory said that even one day of striking could set some industries back a week.
"The thing that's worrying us the most is that, for every day they're closed, if these ports from Brownsville, Texas to Maine are closed, it takes a week to catch up," Mallory said. "So think: If they're out 14 days, they'll have three months to catch up, and that can create a lot of mess."
Mallory also said unless the strike is carried out for several weeks, there will be a manageable uptick in inflation on goods and clothing, especially for the holiday season. As for perishable imports, major chains may take them off the shelves completely. Many local consumers, including shoppers at a Walmart in Olive Branch, have already cleared water and toilet paper off the shelves.