John Cassimitidis, chairman and CEO of United Refining Company and Red Apple Group, discusses Mr. Biden’s non-intervention in the port strike and how it fuels inflation. , explain what will increase the price of food and oil.
Amid the threat of product shortages and rising costs, experts say consumers should start their holiday shopping now or set aside some extra cash.
Stephen Schwartz, managing director of global supply chain, trade and channel finance at Wells Fargo, said consumers will begin to face the ripple effects of financial and logistical challenges stemming from the port strike. Ta. This could lead to potential price increases, shortages and inflation.
“While the impact may not be immediate, the interaction of supply chain channels creates a domino effect that ultimately impacts consumers,” which could cause problems for holiday shopping, Schwartz said. He said that there is.
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Shoppers carry bags at Polaris Fashion Place mall on Black Friday, November 24, 2023 in Columbus, Ohio. (Matthew Hatcher/Bloomberg via Getty Images / Getty Images)
For the first time since 1977, the International Longshoremen’s Association (ILA) and its 45,000 longshoremen went on strike at dozens of ports, which together handle about half of the country’s seaborne imports. The union is demanding better wages and limits on port automation, and negotiations with the United States Maritime Alliance (USMX), which represents port employers, have stalled.
Schwartz said planning ahead is key and consumers should make a list of what they need for their vacation or home project and start buying now.
He also said one way shoppers can get ahead of supply chain disruptions is to stock up on an extra item or two of their favorite essentials.
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People shop at a Lowe’s store in Brooklyn, New York. ((Photo by Spencer Pratt/Getty Images)/Getty Images)
Another problem is that disruption increases costs for businesses, which can be passed on to consumers. Schwartz said consumers need to set aside extra funds “to cushion the financial impact.”
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Schwartz said the supply chain disruptions that occurred during the COVID-19 pandemic were significantly more severe than the current situation because consumer demand for goods increased dramatically.
But given the economic and consumer situation, Schwartz doesn’t expect a similar surge in demand. This reduces the impact on consumers.
