Prepare Now! Major Strike Already Wreaking Havoc on Global Shipping Costs and Shortages...

It’s beginning to look a lot like... panic buying? For those not in the loop, we’re staring down the barrel of a potential strike at nearly three dozen U.S. ports, and it’s got everyone and their mom who doom scrolls on TikTok sweating (like my wife). 

(Source: Giphy) 

Why? Well, because the International Longshoremen’s Association (ILA)—aka the people who make sure the stuff you order actually gets to your doorstep—might walk off the job early next week. That’s 25,000 dockworkers from Maine to Texas, ready to drop their cargo hooks unless they see a substantial bump in wages and limits on automation. 

(Source: Fox Business) 

In short, if this thing goes down, it’s not just a few delayed packages we’re talking about. Nope, it’s a full-blown economy disrupter. East Coast and Gulf Coast ports—handling about half of all the stuff that comes into the U.S. via container—would grind to a halt. Food, medicine, electronics, beer (gasp!)? All in limbo. 

(Source: CNN) 

For instance, JPMorgan analysts are already throwing around numbers like $5 billion, for every single day of stoppage. And with the holiday season looming ahead, the timing couldn’t be worse. Price hikes and empty shelves? Yeah, that’s the nightmare before Christmas no one asked for.

For this reason, big retailers aren’t sitting around waiting for disaster to strike—they’ve already airlifted most of their holiday goodies and booked West Coast carriers before sh*t really does hit the fan. Smart? Well, sort of. 

(Source: Giphy) 

You see, everything has a consequence, even when you’re preparing for the worst as these precautionary moves have jacked up freight expenses by as much as 20%. Turns out, panic buying isn’t just for toilet paper anymore. Now, it’s all about warehousing space for your Black Friday treasures.

(Source: Reuters) 

With that said though, it’s not just the big guys feeling the squeeze. Shipping costs have already started feeling the impact as the cost to ship a 40-foot container from Europe to the U.S. East Coast jumped 29% to $2,376. 

Asia, on the other hand, seems to be chill for now, but if the strike happens, expect Asia-to-U.S routes to join the price surge party. Meaning, if you’ve ordered on Temu or Shein recently… well my condolences go out to you. 

(Source: Scripps News) 

The big question though is how long will this clusterf***k last? Well going back to our trusty JPMorgan analyst Brian Ossenbeck, he’s weirdly cautiously optimistic, suggesting the strike might not last longer than a week. But if it goes on any longer, we could be looking at a situation straight out of early COVID—empty shelves, skyrocketing prices, and a lot of holiday rage. 

(Source: Giphy) 

The Biden administration is tiptoeing around the situation, encouraging both sides to play nice but stopping short of invoking the Taft-Hartley Act to force dockworkers back to work. The White House is betting on the idea that supply chains are stronger now than in the pandemic’s heyday. Let’s hope they’re right.

Meanwhile, businesses are scrambling like a last-minute shopper (like me) with shipping giants like AP Møller-Maersk already prepping for the worst, slapping on a $1,500 surcharge per 20-foot container for anything going in or out of affected ports starting October 21. And while there are alternatives, like rerouting to West Coast ports, experts are warning that those entry points aren’t exactly ready for a cargo tsunami. The result? Higher costs for businesses, which means higher prices for you. Friggin A…

(Source: Shipping Watch) 

Simply put, in edition to wreaking havoc on U.S. ports, the strike could throw a wrench into outbound shipments too, spilling over into global trade and driving up international shipping costs. Oh, and just to make things even more girthy, we have the whole Houthi militant group situation in the Red Sea, which has already been messing with international trade. Because why not throw a little geopolitical chaos into the mix, amirite?

(Source: Giphy) 

So, given all of this doom and gloom that makes every survivalist throb with excitement, what’s the takeaway here? Well, unless the ILA and port operators pull off an October miracle in the next few days, we’re in for some serious supply chain disruptions. Businesses are making moves, but the costs are already piling up, and consumers should brace for possible shortages and price spikes. 

(Source: Giphy) 

So whether you're an early Christmas goer who is hunting for the newest PS5, a designer handbag, or just a turkey for Thanksgiving, this strike could pretty much body bag your entire plans. 

Which is why in the meantime, expect some heavy volatility with material, manufacturing, and shipping stocks as we head through the week - and as always, stay safe and stay frosty, friends! Until next time… 

P.S. Whadda beauty! Our alert last week definitely proved itself worthy as $MNPR ripped to a peak of +66.05% in less than 72 hours! But, but but… that was last week. This week though? Oh baby, our screeners are flashing green on one little known stock... and by the looks of it, we might have another $LFLY on our hands (ICYMI, $LFLY rocketed 142% in less than 25 minutes). Meaning, if you haven't done so yet, I highly suggest upgrading to premium before things get crazy once we drop our newest trade alert! Don't say I didn't warn ya...

Stocks.News does not hold positions in companies mentioned in the article.