Looming Dockworkers Strike Would Disrupt US Auto Deliveries, Food Imports And Could Drive Up Toy Prices

The looming dockworkers' strike would disrupt a broad range of shipments to the U.S. — and could drive up toy prices during the industry's crucial holiday shopping season.

Barring a last-minute agreement, about 45,000 union workers at ports along the East and Gulf coasts are set to walk off the job at 12:01 a.m. Tuesday and no talks are scheduled before then, Reuters said Monday, citing a person familiar with the matter.

The International Longshoremen's Association said on Monday morning that the United States Maritime Alliance continues to block the path toward a settlement and "seems intent on causing a strike at all ports from Maine to Texas."

A job action would shut down ports in Baltimore and Brunswick, Georgia, which are the two busiest in terms of moving automobiles, according to the Associated Press.

It would also close the ports in Philadelphia, which gives priority to fruits and vegetables, and New Orleans, which handles coffee, chemicals and wood products, including plywood, AP said.

Contract negotiations between the ILA and the USMX broke down in June and the Washington Post said big retailers and other major importers have been preparing for a potential strike by stockpiling merchandise.

That's led analysts to dismiss concerns about significant shortages and increased prices of consumer goods, at least in the short term, the Post said.

But even a brief strike would create a backlog of imports, with each day likely leading to five days of future disruptions as ports struggle to get back on schedule, according to the Post.

Jonathan Gold, vice president of supply chain and customs policy at the National Retail Federation, the nation's largest retail trade group, told AP that a majority of the goods likely to be sold for the holidays are already in the U.S.

But Greg Ahearn, president of Toy Association, the country's leading toy trade group, said the anticipated strike would come at an extremely critical time for the toy industry because as much as 60% of sales take place during the fourth quarter that begins Tuesday.

In addition, it takes up to eight weeks to transport toys to the U.S. and shipping for the holiday season didn't start until July, Ahearn told AP.

"It hits many ways," he said. "From a consumer perspective, it starts with delays in availability and then starts to surface as product shortages within toys. At retail for the toy industry, it results in potentially higher prices based on scarcity and increased costs."