close
close

Maisonceres

Trusted News & Timely Insights

    • During the port strike, some Americans panic-buy goods in bulk
    Duluth

    During the port strike, some Americans panic-buy goods in bulk

    Eira Gwyneth Posted on

    play

    During her lunch break on Tuesday — the day 45,000 East Coast longshoremen went on strike — Shayna Turbovsky went to the grocery store to stock up on meat, rice, beans, bananas and toilet paper. She has also filled up her gas tank and plans to continue filling it up.

    Turbovsky, who lives in Fort Worth, Texas, wasn’t planning on going to the store, but when a co-worker told her to restock since there might be shortages and price increases due to the strike, she decided to go to go.

    “I don’t know how bad it will be, but the Southeast was just hit by a hurricane and now the supply chain is being impacted by this attack… I would rather be overprepared than scared,” Turbovsky wrote on X.

    During Wednesday’s lunch rush at Costco in Arlington, Virginia, there were still supplies on shelves that are normally filled to the ceiling with paper towels and toilet paper, but the amount appeared to be lower than usual. Meanwhile, a worker at a Costco in Los Angeles said there had been a spike in toilet paper sales, although it was nowhere near the chaos seen during the COVID-19 shutdown.

    Toilet paper and paper towels are not affected by the strike

    But consumers may be stocking up on the wrong things – and panic buying when they don’t need it.

    On Tuesday, 45,000 union members went on strike as negotiations over a new contract collapsed and 36 ports on the East and Gulf Coasts closed. It was the International Longshoremen’s Association’s (ILA) first strike since 1977.

    Half of all U.S. sea imports flow through East Coast and Gulf ports, meaning consumers may face higher prices and shortages, experts previously told USA TODAY. But these shortages would apply to items such as bananas, alcohol, seafood, electronics, pharmaceuticals, cars, auto parts and machinery parts.

    Additionally, President Joe Biden officials said in a previously reported USA TODAY story that the strike’s impact on consumers would be “limited,” including “in the critical areas of fuel, food and medicine.”

    However, some economists told USA TODAY that each day of the strike could cost the economy up to $5 billion a day as imports and exports are blocked.

    Stockpile consumer supplies to forestall potential shortages

    Turbovsky said she knew most of the things she stocked up on might not be affected by the port strike.

    “But what I was thinking in my head was the pandemic… As soon as people are afraid, if this country is afraid of anything, we’re all going to feel the post-traumatic stress disorder of the pandemic, so people immediately think about toilet paper, paper towels and food supplies.” ” she told USA TODAY.

    “People are afraid and want to consume too much and buy everything they can,” she added.

    Turbovsky spent $280 to purchase more than 30 pounds of meat to store in her freezer, along with bananas, which she also froze, and other essentials. Turbovsky said she has had a hard time finding meat during the pandemic because of supply chain issues.

    She felt guilty about buying so much meat, “but at the end of the day I slept better at night knowing I was prepared for the days ahead,” Turbovsky said.

    The supply chain problem is different from the shutdown due to Covid-19

    The reasons the port strike could lead to product shortages are different than those that sparked shortages during the pandemic, when there were production shutdowns, said Josh Stillwagon, associate professor and chair of the economics department at Babson College in Massachusetts.

    “If all the ports in the U.S. were closed and we didn’t have the West Coast (ports), I think there would be more of this (COVID-19 supply chain issues) to worry about stockpiling,” Stillwagon told USA TODAY.

    Instead, Stillwagon expects any strike-related shortages to mirror what happened in 2021, when ports were overwhelmed as supplies resumed, leading to delivery delays. Depending on the length of the strike, consumers could expect a backlog in goods arrivals as shipments would have to be rerouted to the West Coast, he said.

    Consumers would also pay more because additional transportation costs to move goods from the West Coast to the East Coast would have to be factored into the prices, he said.

    Stillwagon said he understands that consumers may be unsettled by the port strike, which could lead them to hoard goods.

    “People have this ambiguity about what the outcome is going to be, and so they’re kind of resorting to the necessities that were very inconvenient the last time we didn’t have them,” he said. Concerns may also be compounded by the aftermath of Hurricane Helene, which left many of the affected people scrambling for essentials, “so people are stocking up in light of these two major news events.”

    Consequences of the port strike: Will gas prices and deliveries be affected by the port strike? What experts say

    Whether the strike will cause shortages of goods depends on how long it lasts, Stillwagon said. Inventories are back to pre-pandemic levels and suppliers are “a little more prepared for disruptions in the supply chain post-COVID, so you might not notice them if they last a week or two,” he said.

    Not everyone stocks up

    Not all consumers were involved in panic buying.

    At lunchtime Wednesday, shoppers crowded the aisles of Grosvenor Market in Rockville, Maryland. But this was less about hoarding and more about Rosh Hashanah, the upcoming Jewish New Year, said Scot Shuck, the store’s owner.

    By midday on the second day of the dock strike, Grosvenor customers had made little dent in the store’s stock of milk, toilet paper, bread and other staples.

    Shuck said he didn’t experience any of the panic buying that gripped supermarkets in 2020, at the height of the pandemic. He also does not expect that there will be numerous bottlenecks in the supply chain.

    If the strike drags on, Shuck said, the store could struggle to source some of its customers’ favorite imports: “Wines, cheeses and, I think, more fruits than vegetables,” he said.

    And so Shuck said, “Let’s hope it’s over very quickly.”

    USA TODAY staff writers Josh Rivera, Medora Lee and Daniel de Visé contributed to this report. Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at [email protected] or follow her on X, Facebook or Instagram @blinfisher. Sign up here for our free The Daily Money newsletter, featuring consumer news on Fridays.

    Tagged:

    LEAVE A RESPONSE

    Your email address will not be published. Required fields are marked *

    Eira Gwyneth
    View all posts

    You Might Also Like

    ads