NY consumers advised 'to not panic' about supply of goods as dockworkers strike

Tens of thousands of unionized dockworkers walked off the job Tuesday, halting shipments in New York, New Jersey and dozens of other ports along the Atlantic and Gulf coasts, while spiking concerns about the flow of goods and ramifications for consumers.

The strike — by 45,000 International Longshoremen’s Association workers across 36 ports from Maine to Texas — is the union’s first since 1977.

The work stoppage shut down import and export operations at those seaports, which handle roughly half of the nation's imports. Locally, the possibility of an extended strike also sparked concerns about potential impacts for New York consumers and businesses. 

Trade experts said each day of a strike would cause a 5-6 day backup at the ports. They were keeping a close watch on what an extended strike could mean for the price and supply of certain perishable items and other goods, with some experts indicating it would take weeks for consumers to feel any impacts while others said it would take only several days. 

Nelson Eusebio, government relations coordinator at the National Supermarket Association, which represents 700 supermarkets across the East Coast, said Tuesday most supermarkets have hedged against the strike by stockpiling goods. But he said concerns would emerge if the strike continues for longer than a couple weeks. 

"If this takes a longer span then things can get a little edgy ... because those products we get from overseas are no longer around and the inventory gets dried up. Then you go back to regular food basics that are produced in the United States and that puts a strain on the production," Eusebio said. 

"It’s a chain reaction," he added, saying that after three weeks of a port being shuttered, prices could start to increase at grocery stores.

In Easthampton, Lisa-Jae Eggert, co-owner of 3 Moms Organic,  which sells plant-based tick and mosquito repellents online, said she is worried about increased shipping costs if her supplies get rerouted to other ports.

"As a small business, your margins are very slim. You're counting every penny," Eggert said.

But locally and across the state, industry experts said shoppers shouldn't fear that basic staples will run out soon. They also advised against hoarding products, which could create a shortfall.

Jake Tavello, chief operating officer at Stew Leonard's, said its eight supermarkets, including two on Long Island, started preparing for the shipping shutdown when talk about a possible strike first surfaced in June.

"Our message to customers would be to not panic ... for the most part, we're going to be OK," Taveras said. 

Mike Durant, president of the Food Industry Alliance of New York State Inc., a trade group representing the grocery industry, said while New Yorkers shouldn’t be rushing to stock up on food, there will be some disruption if the strike continues.

"We are focused on fruits and some fresh seafood as the immediate items that could be impacted if this goes on," he added.

The strike kicked off after United States Maritime Alliance, the representative for the dockworkers' employers, and the ILA, which is seeking higher wages and protections against the use of automation, were unable to reach a contract deal. On Tuesday the alliance released a statement saying it would stick to a contract offer that failed to thwart the strike. 

"Our current offer of a nearly 50% wage increase exceeds every other recent union settlement, while addressing inflation, and recognizing the ILA’s hard work to keep the global economy running," the statement said.

ILA union president Harold Daggett joined picket lines at New Jersey shipping terminals early Tuesday. He released a statement saying the union was demanding a "$5 an hour increase in wages" for each of the six years of a potential new contract and "absolute airtight language that there will be no automation or semi-automation."

The Port of New York and New Jersey, the third busiest in the nation, had prepared a work stoppage plan.

Certain bulk materials that don't require use of union labor, like road salt, cement and orange juice will continue to be imported and exported, according to officials at the Port Authority.

The supply of home heating oil, gasoline and diesel also won't be affected, according to New York Gov. Kathy Hochul. She said Tuesday it was "critical" for both sides at the bargaining table "to reach a fair agreement soon that respects workers and ensures a flow of commerce through our ports."

CORRECTION: An earlier version of this story misidentified Jake Tavello, chief operating officer at Stew Leonard's.