We reported earlier this week that workers at the East and Gulf ports have gone on strike following the expiration of the six-year master contract between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) on September 30. Costco is ready to support the industry during this time, making preparations for any supply chain disruptions sparked by this strike.
"We've cleared the ports, we've pre-shipped. We've done several different things that we could to get holiday goods in ahead of this time frame, and looked at alternate plans that we could execute with moving goods to different ports and coming across the country if needed," Chief Executive Officer Ron Vachris said on the club chain’s fourth-quarter earnings call.
Costco has initiated multiple contingency plans, including pre-shipping some products to ensure holiday goods arrive early and preparing to use different ports.
The strike was initiated yesterday, October 1, affecting a total of 36 ports that handle more than half of the United States ocean trade of products.
According to reports from Reuters, a prolonged strike could result in shortages of staple grocery items such as bananas, coffee, and cocoa, which could translate to higher grocery prices over time. The disruption could also mean lost export sales of key agricultural products including beef, pork, chicken, and eggs.
For more updates on the situation, stick with us at DMN.
