In two to three weeks, we could see impacts on everything from groceries and pharmaceutical drugs to construction and car repair shops- but the strike may end before we see any of these impacts.
Ports along the East and Gulf coasts shut down following dockworker strikes.
Economic associate professor at the University of North Alabama, Jason Imbrogno, says the International Longshoremen’s Association union and the shipping companies at the ports had a contractual agreement that expired Monday.
Since there is no labor union contract currently in place, he explained many dockworkers decided to go on strike after a new contract was not agreed on.
Some of the things the labor union argued was higher pay, better funded pensions, and no automation in the ports.
Imbrogno says North Alabama residents won't see any impacts of these strikes immediately, but we may see shortages in certain products in the coming weeks if the strike continues.
“They’re the ones that take all of the containers off of the ships and load them onto trucks, so if they’re not there that can’t happen,†Imbrogno said. “So that’s where people are so concerned about the economic impact of this. Are we going to have shortages? I mean yes. In a lot of goods we are if this lasts any sort of reasonable amount of time.â€
Imbrogno says it's been nearly 50 years since the ILA last went on strike. With tens of thousands of port workers picketing right now instead of working, Imbrogno says some Wall Street firms estimate the economic impact to be billions of dollars every day.
Until the strike is resolved, many products won't be making it into the United States in the coming weeks.
“It’s actually usually cheaper, especially in bulk, to load it on a ship and send it down,†Imbrogno said. “Without these guys, without the ILA at the ports, none of that stuff can happen. Stuff will literally just sit on ships and not be able to be off loaded.â€
In two to three weeks, Imbrogno says we could see impacts on everything from groceries and pharmaceutical drugs to construction and car repair shops - but the strike may end before we see any of these impacts.
For the time being, Imbrogno says he doesn't see any reason to rush to the stores to stock up on items.
You may see shortages in certain items in the coming weeks, but he says nothing too extreme.
