More expensive pineapple? Here's how the US port strike could affect your wallet

With U.S. longshoremen on strike starting Tuesday morning, consumers around the world – and particularly in Canada, with its close trade ties with the U.S. – could soon experience a shortage of goods or a price increase.

Everything from fruits and vegetables to imported vehicles and electronic devices could be affected by the strike led by longshoremen on the U.S. East Coast and Gulf Coast.

The International Longshoremen's Association (ILA), which represents 4,500 workers, is striking for higher wages after negotiations with employers' group United States Maritime Alliance (USMX) failed.

Experts who spoke to CBC News generally agreed that Canadian consumers could feel some impact from the strike, which will cut U.S. shipping in half and is expected to cost the U.S. economy billions of dollars a day.

“A disruption at these ports has a significant, significant impact on the supply chain and the availability of these goods in Canada generally,” said Pascal Chan, senior director of transportation, infrastructure and construction at the Canadian Chamber of Commerce.

Manufacturing, retail and cars

Chan said the strike will particularly impact imports of perishable goods – particularly products that are not grown in Canada or are currently out of season, which could be in short supply or become more expensive.

Retail is also a cause for concern ahead of the busy Christmas period. Companies typically try to get their holiday inventory ready early before the shopping rush begins, Chan noted.

“Anything that significantly disrupts transportation infrastructure in the U.S. has an impact on the global economy, and that is even worse here in Canada given the significant two-way trade and deeply integrated supply chains between our two countries,” he said.

“I think we're going to feel it very, very quickly, whether it's the shortage of goods or the prices. Because if we’re not able to get what we need, that increases cost pressures for a lot of these goods.”

The automotive industry will also be affected. Those who ordered foreign-made cars will feel the impact first, and auto parts will be affected soon after, said Flavio Volpe, president of the Automotive Parts Manufacturers' Association.

Volpe said East Coast ports serve all brands of cars imported into Canada.

Some companies have also informed their customers that they will impose an additional surcharge on future deliveries. Container shipping giant Maersk, for example, has announced it will introduce a disruption surcharge of up to $3,780 per container, while shipper MSC has said it will introduce an emergency surcharge of up to $3,798 per container.

If you like to eat, eat, eat, pineapples and bananas…

Canadians could see shortages of certain fruits and vegetables in the next few days, likely including pineapples and bananas, said Fraser Johnson, a professor of operations management at Western University in London, Ont.

“About 80 percent of the bananas shipped to the U.S. come through the East Coast,” he said.

And at some point the bananas may no longer reach us at all.

“If it continues for an extended period of time, we may experience a shortage of products, consumer goods, clothing, electronics and automobiles shipped to North America,” Johnson said.

VIEW | US dockworkers have been on strike since Tuesday morning:

45,000 US longshoremen are on strike today over collective bargaining

Members of the International Longshoremen's Association, about 45,000 workers at ports from Maine to Texas, are on strike, a shipping shutdown that could cost the economy up to $4.5 billion a day.

Anthony Formusa, president of fruit and vegetable importer and distributor National Produce Marketing Inc., says some of his pineapples and mangoes are already in limbo.

“The delays result in our inability to bring the product to market to meet our demand and fulfill our customers’ orders,” he said.

Given that the food the company imports is perishable and shipped long distances — some of which are tropical fruits from South and Central America or Spain, Morocco and Egypt — “everyone has a day when the product is delayed , Effects on shelf life.” the product itself.”

“Hypothetically … a three-day strike would result in a 15-day delay in unloading our container,” Formusa said.

“And 15 days would definitely suggest that the products had no market value. So there is a big potential loss at stake.”

While Formusa notes that his company ships some of its goods to ports in Delaware and New Jersey as well as the Port of Philadelphia, the latter is partially spared from the strike because some of its workers are represented by a separate union.

Bondi Produce, Ontario's largest fresh produce retailer, expects only minor disruptions, according to its vice president Matt DuPerrouzel. The company makes over 1,000 deliveries daily.

“We have had discussions with our banana importers, we have had discussions with our pineapple importers,” DuPerrouzel said.

“I would say that 90 percent of our product, especially at the start of the offshore season like now, will arrive at the Port of Philadelphia. It is one of the most important transshipment points for the products we use in North America.”

The company expects only a slight increase in prices. “We don’t have anyone ringing alarm bells or raising massive red flags about availability, and we’re not seeing drastic increases,” DuPerrouzel said.