### East and Gulf Coast Dockworkers Threaten Strike, Raising Concerns Over Holiday Season Prices

Dockworkers along the East and Gulf coasts are prepared to strike if a new contract is not secured by October 1, a situation that has experts cautioning consumers about potential price hikes and empty shelves. This development comes at a particularly critical time, with the holiday shopping season on the horizon and inflation pressures just beginning to ease for many households.

The International Longshoremen's Association (ILA) represents around 45,000 dockworkers spanning three dozen U.S. ports from Maine to Texas. These ports account for approximately 50% of the country's seaborne imports. The ILA has clearly indicated its members are ready to halt work if no new contract is reached by the set deadline.

The Retail Industry Leaders Association (RILA) has voiced its concern, describing the prospective strike as a "self-inflicted wound to the U.S. economy." According to a research note, a strike could cost the economy about $5 billion per day. Despite retailer contingency plans to mitigate the impact, the RILA has warned that the longer the strike persists, the harder it will be to buffer its effects.

Several experts emphasize that such disruptions in shipping and supply chains often lead to product shortages which, in turn, drive up prices. Cody Moore, partner and wealth adviser at Wealth Enhancement & Prevention, pointed out that if prices rise due to the strike, it could further inflate inflation rates, potentially causing the Federal Reserve to delay interest rate cuts. This could affect consumer expenses on home mortgages, car loans, and credit cards.

Jason Fisk, CEO of SalSon Logistics, advised shoppers to prepare for price increases on goods by the first quarter of 2025, or even sooner. Despite importers' efforts to manage the associated risks, these strategies often incur significant costs, indirectly impacting consumer prices. Fisk highlighted that discretionary products, particularly luxury items and recreational goods, might experience the highest price hikes due to their high price elasticity.

Though the full extent of the strike's impact remains uncertain, significant repercussions are anticipated. Fisk mentioned potential "retail stockouts and plant slowdowns," particularly as the holiday season approaches. Retail stockouts refer to situations when products are unavailable for purchase, an outcome that could become more frequent if the strike proceeds.

As the deadline looms, the situation remains tense, with considerable economic implications for both consumers and businesses.