Union dockworkers hit the picket lines early this morning, including those at the Port of New Orleans. UNO Economic Professor Walter Lane says prolonged work stoppage could significantly impact the U.S. economy, potentially raising the cost of consumer goods and causing shortages ahead of the holiday season.
“You know we will have some disruptions for some people but it won’t be a big deal. If it extends up towards a month or so, then we’re beginning to look at disruptions on the order of, kind of some of the things we saw in Covid.”
Grocery stores, which have limited capacity to store perishable goods, could struggle to restock quickly, leading to empty shelves and price spikes. Lane stresses that affected ports handle 75% of the nation’s banana imports, making this particularly vulnerable to supply chain disruptions.
“If those ships can’t unload their cargo, many times that means parts cant go to the factories that need to make certain products. Especially things like bananas. We’re a major port for bananas. Well, those are going to rot out in the Gulf.”
A one-week strike alone could cost nearly $3.8 billion, according to industry estimates. Lane says the economic fallout would likely move through multiple sectors, with consumers feeling the effects of higher prices and reduced availability of key products.
“There’s a lot of spill over effects. Not things that would make the strike lengthen, but certainly will have the ripple effects in the economy that makes it effect a lot of people.”