Port strike could cause economic impact through 2013
Gifts & Dec reports on possible East Coast port closure
Tina Benitez, Gifts & Decorative Accessories -- Home Accents Today, 9/6/2012 9:17:30 AM
Talks between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) continue to deteriorate as a September 30 deadline nears. A fall strike at the onset of the all-important fourth quarter holiday season could leave a lasting scar on the U.S. economy through 2013, according to some experts.
Not only would an ILA strike affect 14 East and Gulf Coast ports, but it would have a significant, and negative, impact on fourth quarter holiday retail sales, import and export businesses throughout the United States, and the U.S. economy as a whole moving into 2013, according to Jonathan Gold, vice president, supply chain and customers policy, National Retail Federation (NRF). He noted that 95 percent of all container shipments to the East Coast are handled through the 14 ports.
"The long-term effect on the economy could be pretty bad," Gold told Gifts and Decorative Accessories. "It could be significant. Obviously, it doesn't just impact retailers it impacts any business who is involved in importing and exporting through the East and Gulf Coast ports."
He added, "If we look back to what happened in 2002 on the West Coast where you had a 10-day lock-out, you had a cost to the U.S. economy of a billion dollars a day, and it took six months for the system to recover from the back log that was created."
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