U.S. retailer Costco Wholesale is taking a number of steps to prepare for possible strikes next week at U.S. ports on the East Coast and Gulf of Mexico, the company’s chief executive said Thursday.
Contingency plans in place include pre-shipping some products to get holiday goods out sooner and prepare to use different ports, Costco CEO Ron Vachris said on the conference call. on the company’s fourth quarter results.
Businesses that rely on shipping are increasingly concerned that the 45,000 members of the International Longshoremen’s Association will go on strike Oct. 1 and close 36 ports that handle more than half of U.S. maritime trade in products such as bananas, meat, medicines, automobile parts, construction materials and clothing.
If that happens, delays and costs could quickly trickle down, threatening the U.S. economy in the weeks leading up to the presidential election, straining already taxed global shipping networks and imposing higher prices on consumers over time. .
“We cleared customs from ports, we pre-shipped goods. We did everything in our power to get holiday goods out ahead of schedule, and we considered alternative plans to transport goods to other ports and cross the country if necessary,” Mr Vachris said.
Asked about the anticipated delivery of goods, he replied: “We have done a little bit of everything you talked about”, before adding: “There could be some disruptions, but I can’t tell you how much. measure…until we know what might be happening there.”
A prolonged strike could lead to shortages of familiar products such as bananas, coffee and cocoa, which could ultimately result in higher grocery prices.
It could also result in a loss of export sales of essential agricultural products, such as beef, pork, chicken and eggs.
