January 1, BREAKING: Potential port strikes threaten holiday shopping and economic stability

Potential port strikes on the East Coast and Gulf of Mexico are causing significant disruption in the supply chain.

This turmoil could lead to higher inflation, as companies struggle to meet consumer demand.

George Kochanowski, CEO of logistics firm Staxxon, voiced his concerns to FOX Business.

“Goods trans-shipped across the country are not only going to be late but they will cost more, e.g., apparel meant for early winter and the holidays,” he said.

If goods are delayed or containerized, the logistics problems multiply.

Kochanowski explained, “If the goods were containerized, where will all those empties go and who will pay to have them stored, accounted for, and repositioned? All these costs will be factored in the price of the goods sold.”

The International Longshoremen’s Association (ILA) is playing hardball during its negotiations for 45,000 dockworkers at major U.S. ports from Maine to Texas.

These ports manage about half of the country’s imports.

They have warned their members are ready to stop work if there is no new contract by the Oct. 1 deadline.

Retailers are particularly worried as the labor dispute coincides with their critical sales period.

A trade group told FOX Business that the lack of a new labor deal could have a “devastating impact” on the U.S. economy.

Jim Gillis, Pacific region president of IMC, a trucking company, spotlighted the issues they face.

He described a “litany of issues related to cargo surges – mainly port congestion and pool chassis shortages.”

As a result, truckers like Gillis have seen longer wait times.

“As a trucker, we are seeing significant wait times for our drivers and in some cases, even being turned away due to the congestion – this is directly correlated to the increased volume shifted to the West Coast,” he stated.

There has been an 18% rise in freight on the West Coast.

The Ports of Los Angeles and Long Beach have unexpectedly become epicenters of activity.

However, Gillis emphasized that shippers made this decision to pivot to the West Coast weeks ago.

Gillis added, “Those shippers who are now looking at shifting cargo are a little behind the eight ball and not necessarily finding quick, economic solutions to solve their issues.”

Nonetheless, he pointed out that the current surge doesn’t match the “emergency” levels seen during the latter stages of the pandemic.

Joe Perez, Goya Foods Senior Vice President,

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