Thursday, October 3

In case you missed it, the United States Vice Presidential Debate took place on Tuesday night, with Democratic nominee Tim Walz facing off against Republican nominee JD Vance in an intense debate. Look out for a deep dive article by Mihir Gupta coming later this week on the political event.

Thousands of port workers across the United States are beginning a strike, which could have a serious effect on the country's economy.

Shipping is a crucial industry across the world, as it allows large amounts of goods to be easily transported across oceans, and is much more efficient than air freight. However, it is particularly important for the United States, which is distanced from many of the countries it imports goods from, such as China, Japan, and numerous European countries.

Unfortunately for the industry, a massive strike is taking place, and it could greatly unsettle the import/export business of the US. Starting at 12:00 am ET on Tuesday, over 45,000 members of the International Longshoremen's Association (ILA) went on strike across the US's eastern and Gulf ports, stretching across an area from Maine to Texas, which also includes major port cities like New York and Newark. Those two ports alone handle over half of all container-shipped goods in the US. East Coast ports primarily handle clothing and other worn items, car parts, and various foods.

According to Oxford Economics, this strike could end up costing the US economy $4.5 billion to $7.5 billion each week, as industries related to shipping will also be affected.

The United States Maritime Alliance, or USMX, is working on negotiating with the ILA, but they will need to come to a quick resolution. USMX has offered a 50% increase in pay for all of the union members, but they have not begun official negotiations yet. The entire reason the ILA is on strike is due to inflation-- while their wages have increased 11% to $39 an hour, inflation has increased 24% in that time period, leading to financial problems for port workers.

The reason why the issue needs to be sorted out quickly is because this strike will not just affect the lives of port workers, but almost all Americans. The trucking and warehouse industry is also taking a hit, as they depend on cargo and shipping to supply them with the materials that they need to distribute amongst the people. Meanwhile, the strike could last days, weeks, or even months. If the strike does last for a considerably long period of time, consumers could be facing price hikes, which would bring back memories of inflation at its peak. Thankfully, a drastic increase in inflation is not expected, but consumers can expect temporary price increases if the strike lasts multiple weeks.

Supply chain problems could lead to shortages of clothing, car parts, furniture, alcoholic beverages, wood, coffee, sugar, and perishable items-- according to the Census Bureau, 80% of US coffee and 75% of bananas arrive through East Coast ports. The food industry will not be terribly affected because of the fact that much of US food is produced within the country, but prices of perishable items could begin rising as soon as next week-- fruits and vegetables only last a little while on shelves before going bad, some even sooner.

There is a bright side, though: due to the incoming holiday season, many warehouses and stores have already stocked up on fall and winter's most popular goods. In addition, other stores have also been stocking up due to the fact that this strike had been predicted months ago.

While goods are being diverted to the West Coast for the time being, those ports could soon overflow, leading to extra goods being shipped to other ports in Canada and Mexico. Unfortunately, it could take some time to reach a resolution, and that could cost the US economy, American consumers, and workers in industries supported by shipping.

Fact of the Day (Reader's Digest): Due to the thousands of offshore islands it occupies, Canada has the largest coastline in the world. In fact, it is a staggering 151,019 miles, which is over double the second-longest coastline-- Norway at a mere 62,765 miles.

Quote of the Day (Gracious Quotes): I never ask a man what his business is, for it never interests me. What I ask him about are his thoughts and dreams. (H.P. Lovecraft)

Word of the Day (Merriam-Webster): Fret (verb)- To fret is to worry or be concerned.

In a Sentence: I was sure we wouldn’t get there in time, but they told me not to fret.