Port strike: sale of distilled spirits and imports at risk says trade group
United Refining Company and Red Apple Group Chairman and CEO John Catsimitidis discusses Biden’s non-interference in the port strikes and explains how it will increase currency strength and raise food and oil prices.
The trade association said the distilled spirits industry and its consumers are dealing with the impact of a strike by dockworkers on East and Gulf Coast ports – and could get even more if it continues.
Distilled Spirits Council of the United States CEO Chris Swonger told FOX Business on Wednesday that the industry is “very dependent on the strength of the American port system” and that even a day of work stoppages “sent effects through the supply chain.”
His comments came before tens of thousands of dock workers represented by the International Longshoremen’s Association (ILA) on Thursday began their third day of strikes at thirty ports in Mpumalanga and the Gulf Coasts. They walked off the job after the ILA and the US Maritime Alliance (USMX) were unable to reach an agreement on Monday before their contract expired.
Workers go on strike at the Bayport Container Terminal in Seabrook, Texas, on October 1, 2024. Officials at 14 ports along the US East and Gulf Coasts were making last-minute preparations on September 30 for a possible labor strike. (MAKA FELIX/AFP via Getty Images / Getty Images)
Ports affected by the ILA suspension handled 77% of US distilled spirits exports and 43% of imports last year, according to the Distilled Spirits Councils.
That means the strikes could affect shipments of spirits such as American whiskey and imported spirits such as cognac, Scotch whiskey, Irish whiskey, gin and certain liqueurs.
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“If, in fact, this strike continues for a long time – a week or more, a few weeks, God forbid – it could eventually affect the best selling period in the industry, which is usually October, November and December, during the holidays, when our main customers will want to buy a special bottle cognac or scotch or our consumers and American whiskey lovers overseas in Europe may not have access to the product,” explained Swonger.
“Therefore, if this strike continues, it will not only have a negative impact on the economy of the industry, but ultimately it will have a negative impact on consumers who love the taste of distilled spirits products.”
Consumers may see prices for distilled spirits rise due to the shutdown at Eastern and Gulf Coast ports, according to the CEO of the Distilled Spirits Council.
Great selection of bottles at the bar. Cocktail and alcohol. (Photo by: Godong/Universal Images Group via Getty Images) (Godong Group/Universal Images via Getty Images / Getty Images)
“Our member companies are currently looking for other ways to get product back and forth, and air freight, as you know, can be more expensive than shipping,” Swonger told FOX Business. “Our member companies and people who sell to member companies are trying to look for other ways, because no one knows how long the strike will last, and that just adds costs to the plans, so that also has an impact. to consumers.”
Others in the distilled spirits industry are also looking at West Coast ports as a possible alternative.
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Swonger called on the ILA and the USMX to “come to the negotiating table and resolve this,” warning that for job creation, the economy and the effects of the supply chain, the strike would not have been possible only because of the broken spirits but also in other sectors. DISCUS and other trade associations in various industries have also pushed for President Biden and his administration to end the work stoppage.
“The strike will cost the economy billions of rands per day, which will affect large and small businesses that do not participate in the negotiations, but rely on the free flow of goods, imported and exported, through these important ports,” the group said. said in Wednesday’s letter. “This closure of the ports means that our farmers cannot sell their crops in overseas markets, manufacturers cannot get essential items from the production facilities, retailers will not be able to get their holiday goods in time and many other industries will be. badly affected.”
Workers strike at the Bayport Container Terminal in Seabrook, Texas, on Oct. 1, 2024. Officials at 14 ports along the US East and Gulf Coasts were making last-minute preparations on Sept. 30 for a potential labor strike. (Photo by MAKA FELIX/AFP via Getty Images/Getty Images)
JPMorgan estimated that each day of work stoppages at Eastern and Gulf Coast ports could cost the economy up to $4.5 billion per day, FOX Business previously reported.
PORT STRIKE AND CRUISE LINES: WILL OPERATIONS BE DISRUPTED?
The ILA said earlier in the week that its members would nominate “as long as it takes for USMX to meet its contractual requirements.”
While a widespread strike took place at the port, the union also vowed that its members would continue to operate US military vessels and passenger ships.
Eric Revell contributed to this report.
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