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    • Will the port strike impact the gas industry? Experts and federal authorities agree
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    Will the port strike impact the gas industry? Experts and federal authorities agree

    Eira Gwyneth Posted on

    Fortunately for Americans, the strike at 36 ports on the East and Gulf Coasts is not expected to disrupt the oil and gas industry – at least not immediately.

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    It may be difficult to find many products as the longshore workers’ union strike continues, but there is one crucial place where experts don’t expect consumers to suffer: at the gas pump.

    On Tuesday, 45,000 union members walked off the job as negotiations over a new collective bargaining agreement collapsed, leading to the closure of 36 ports on the East and Gulf Coasts, which together handle about half of all U.S. maritime imports. The decision marked the first strike by the International Longshoremen’s Association (ILA) since 1977.

    The work stoppage is expected to make it difficult for shoppers to find products such as bananas, electronics, auto parts, medicines and even alcohol. But fortunately for Americans, the strike is not expected to disrupt the oil and gas industry – at least not immediately.

    Here’s what the federal government and other experts want consumers to know about their options for refueling their vehicles during the strike.

    How a port strike could affect buyers: Alcohol, bananas and seafood are among the products that could be in short supply

    Fuel prices and supplies are unlikely to be affected by the port strike

    Because exports and imports of crude oil, gasoline, natural gas and other liquid fuels are handled by “other workers,” the Energy Department issued a statement saying the strike “will have no immediate impact on fuel supplies or prices “.

    The department added that it was working with the White House and other government agencies to “continue to work with oil and gas companies, as well as power generators and utilities, to monitor operations and supply chains.”

    “We encourage all parties to come to the negotiating table and negotiate in good faith – fairly and quickly,” the agency said.

    According to experts, a prolonged strike could have an impact on the gas industry

    Experts who spoke to USA TODAY on Wednesday agreed on one caveat: that the strike will not be extended.

    Ernie Miller, CEO of Verde Clean Fuels, said fears of a massive spike in oil prices from either the attack or a larger war in the Middle East following Iran’s missile attack on Israel may be overblown. The United States has something of a “buffer,” thanks to increases in domestic oil production over the last decade, he said.

    “We’re in a very different production scenario now than we were years ago when we were a net importer,” Miller said.

    While this domestic stockpile could protect against a short-term shortage, a prolonged strike “could have consequences,” said Stephen Schwartz, managing director of supply chain, trading and distribution solutions at Wells Fargo.

    “Oil and gas imports and exports are typically handled by different workers and processed through terminals that are not within the scope of the current port strike,” Schwartz said. “However, a prolonged strike could impact energy demand in certain sectors such as trucking, rail and bunker fuel for cargo ships.

    What consumer products might be difficult to find?

    With about half of all U.S. sea imports flowing through the ports, consumers could end up facing higher prices and shortages again, said Chris Tang, a distinguished professor at the University of California, Los Angeles who specializes in supply chain management USA TODAY.

    Items that may experience shortages and higher prices include:

    • seafood: Perishable products such as cod from Iceland or Canada and shrimp from Thailand and Ecuador cannot be easily transported by train because they need to be refrigerated, Tang said.
    • electronics: Mobile phones and computers now coming from Southeast Asian countries such as Vietnam, Indonesia and Thailand instead of China are being routed through East Coast ports, Tang said.
    • drug: Even if they are easier to ship by air, consumers may still experience a drug shortage if negotiations cannot be completed within about a month, Tang said.
    • Cars and car parts: European cars and auto parts shipped by container often pass through ports on the East and Gulf Coasts. The Port of Baltimore, Maryland, is the nation’s leader in auto shipping, experts say.
    • Machine parts: East Coast ports outperform others in the U.S. in shipping machinery, manufactured steel and precision instruments, according to S&P Global Market Intelligence.
    • alcohol: Wine, beer and spirits imported from Europe, South America or the Caribbean could take a hit. Luckily, American drinkers have plenty of domestic options.
    • Bananas: About 75% of the country’s bananas come through ports on the East and Gulf Coasts, said Jason Miller, interim director of Michigan State University’s supply chain management department. Because the fruit is perishable, it is not economical to transport it by plane, Miller wrote in a LinkedIn post.

    How else might consumers be affected by the strike?

    The strike, expected to cost the economy up to $5 billion a day, could be felt heavily in consumers’ wallets if it causes prices to rise, experts previously told USA TODAY.

    Even if port workers agree to a deal, “labor costs go up,” Tang said. “So in the future, consumers will still pay a higher price. Consumers will have to learn to adapt and adapt, but unfortunately it will be more expensive.”

    Americans could also soon have difficulty doing their Christmas shopping.

    With the threat of supply chain disruption caused by the strike, consumers may find it difficult to find the toys and other gifts they are looking for for their children in the coming weeks and months.

    While large companies like Walmart and Costco can afford to capture and store inventory ahead of time — or absorb the costs of redirecting shipments to the West Coast — smaller companies typically can’t do that, experts say.

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    Eira Gwyneth
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