The International Longshoremen’s Union, which represents about 45,000 longshoremen on the East and Gulf coasts, will strike next week if an agreement is not reached by September 30. This could jeopardize global supply of goods. ITR Economics, Lauren Saidel-Baker, tells Market Managers Julie Hyman and Josh Lipton that the disruptions of the pandemic season may, in some ways, prepare for the supply disruptions that would come from a longer strike.
“If this strike works, it actually starts to work at the top [in terms of duration]this could be as bad or worse than that initial disruption of the pandemic,” Saidel-Baker tells Yahoo Finance.
“The good news is that many businesses have learned during the supply chain crisis of the pandemic. How do you go about things, and how are you flexible? Of [time since the pandemic started]many businesses are different in their demands,” said the economist.
He notes that the strike “will affect many ports [and] it’s obviously going to be a challenge, but we’ve also seen supply chain issues emerge” during the pandemic since then. Supply chain disruption has been “a growing problem, but it’s also raising awareness for many businesses. We see that diversity.”
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This post was written by Naomi Buchanan.
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