How to Hack a $1.3T Market

Forget concrete. The new foundation for real estate success is digital, and Pacaso leads the way. Their tech unlocks a $1.3T real estate market. They've already earned $110M+ in gross profits in their operating history and reserved the Nasdaq ticker PCSO.

US retailers brace for potential pain from a longshoremen's strike

TOM KRISHER
September 29, 2024

With a dockworkers' strike threatening to close ports on the East and Gulf coasts beginning this week, Chris Butler is growing worried.

Butler is CEO of the National Tree Company, and, like many businesses, his is counting on shipments that are en route from Asia but won't reach their ports before an expected strike by longshoremen starting at 12:01 a.m. Eastern time Tuesday.

The company, based in New Jersey, is an importer of artificial Christmas trees and other holiday decorations. If a strike were to last just a few days, there might be time afterward to unload the trees, transport them to warehouses and have them ready for customers this season.

Yet if a strike were to keep ports closed until, say, November, about 150,000 trees might not arrive in time for the peak shopping season, imposing costs on National Tree and other businesses. In a worst-case scenario, those costs, multiplied across industries, could fuel inflation and pressure the U.S. economy.

"Definitely not an ideal situation," Butler said.

National Tree already has stockpiled or delivered most of the roughly 2 million artificial trees it sells each year. But it would lose revenue if 150,000 of the trees got stuck in the pipeline.

Other businesses face the same predicament, with goods that could be stranded at sea if 45,000 members of the International Longshoremen's Association make good on their threat to strike. They could shut down 36 ports from Maine to Texas that handle about half the goods shipped into and out of the United States. (West Coast dockworkers belong to a different union and aren't involved in the strike.)

A prolonged strike would force companies to pay shippers for the delays, and goods could arrive too late for the high point of holiday shopping season. On Friday, top Biden administration officials met with port operators and told them they should negotiate with the union ahead of Tuesday, according to a White House official who insisted on anonymity to discuss an ongoing meeting.

Butler says he's hoping for an agreement or for government intervention to halt a strike. But the U.S. Maritime Alliance, which represents shippers and ports, and the longshoremen's union haven't met since June. And no talks are scheduled.

The union is demanding significantly higher wages and a total ban on the automation of cranes, gates and moving containers in the loading and unloading of freight.

The Toy Association, the nation's leading toy trade group, was among about 200 organizations that asked President Joe Biden in a letter this month to work with both sides to reach an agreement. The National Grain and Feed Association also urged Biden to take action to avert a strike, which would come just as harvest season gets underway.

Their push has put Biden and Vice President Kamala Harris, the Democratic presidential nominee, in a sensitive position: Both have courted union support and don't want to be seen as pressuring the longshoremen to reach a settlement. Yet if an extended strike were to cause shortages of consumer goods or fuel high inflation, it could cost Harris votes in the November election.

Under the Taft-Hartley Act, Biden could seek a court order to suspend the strike for an 80-day cooling-off period. Robyn Patterson, a White House spokesperson, said in a statement that the administration has never invoked the act and isn't considering it now.

Biden and Congress did step in two years ago to block a looming freight rail strike and force those workers to accept a deal because of widespread fears that a rail strike would have damaged the economy.

Alex Hertel-Fernandez, an associate professor of international and public affairs at Columbia University who served as a Labor Department official under Biden, suggested that the administration will follow the playbook it used in talks last year between West Coast ports and the union there: Mediating negotiations without directly intervening.

Greg Ahearn, CEO of the Toy Association, said a strike would happen at a critical moment for toy sellers and makers: Up to 60% of annual sales occur from October through December. Though some toy companies shipped goods earlier, Ahearn said a strike would make it hard to replenish hot-selling items.

A strike, he warned, could raise toy prices "based on scarcity and increased costs."

At National Tree, Butler and his crew began preparing for a strike in July. They accelerated shipments for everything they could. But one major retail client, he said, asked for trees early. And until recently, factories in China and elsewhere couldn't produce the rest of National Tree's orders.

Ships containing the trees are on the way to New York but won't get there before Tuesday. A prolonged strike, Butler said, would force most of the trees to be warehoused until next Christmas season.

A longshoremen's strike would further distress a global supply chain that has already endured slowdowns from attacks by Yemen's Houthi rebels on commercial shipping. Those attacks have all but shut down the use of the Red Sea and Suez Canal, said Jonathan Gold, vice president of supply chain and customs policy at the National Retail Federation. The attacks are forcing longer transit times for vessels that must navigate around the Cape of Good Hope to reach East Coast and Gulf Coast ports.

A dockworkers' strike, Gold said, could prove even more damaging than the pandemic-induced port congestion in 2021 and 2022, when cargo was allowed to move, albeit slowly.

Eastern ports could be left at a standstill. Gold noted that carriers are already announcing surcharges on containers to address potential disruptions, a trend that could elevate inflation.

Many retailers might find it difficult to charge customers more to make up for those expenses. Most vulnerable, Gold said, would be small businesses that don't import directly and lack the financial resources to incur higher costs.

Shippers could reroute some cargo to West Coast ports. But those ports couldn't come close to absorbing the additional cargo. The Port of Los Angeles, for example, moved 960,000 containers in August -- about 80% of its capacity -- said Gene Seroka, its executive director.

The major Western railroads, Union Pacific and BNSF, have added capacity to their systems to handle more freight as imports have increased. Eastern railroads CSX and Norfolk Southern say they can move cars and crews to handle more freight coming to Chicago from the West. But it's not clear just how much more the railroads can manage.

In any case, Butler said, it would be too costly for him to ship trees across the country by rail.

Taylor Green, co-founder of landscaping company Artificial Grass Solutions in Los Angeles, which imports artificial turf, said he bought 25% more turf than usual to ensure there would be enough for clients' projects. He also made arrangements with alternative suppliers in case the strike goes on indefinitely. If it does, Green said, price increases would likely be necessary.

Still, like some larger retailers and manufacturers, Artificial Grass says it's better prepared for shortages than it was during the pandemic.

"We've learned to be proactive rather than reactive," Green said.

____

Associated Press Writers Anne D'Innocenzio and Mae Anderson in New York, Josh Boak in Washington and Josh Funk in Omaha, Nebraska, contributed to this report.

Continue Reading...

Popular

The Next Palantir? Does This Under $5 AI Stock Have The Potential To Rise And Shine

This micro-cap AI stock is being increasingly touted as the next Palantir Technologies Inc. (NASDAQ: PLTR), but some analysts disagree with this framing.

A judge resisted Trump’s order on gender identity. The EEOC just fired her

The federal agency charged with protecting workers’ civil rights has terminated a New York administrative judge who , including President Donald Trump’s executive order decreeing male and female as .

The Tesla Shock Nobody Sees Coming - Ad

While headlines scream "Tesla is doomed"...Jeff Brown has uncovered a revolutionary AI breakthrough buried inside Tesla's labs. One that is helping AI escape from our computer screens and manifest itself here in the real world all while creating a 25,000% growth market explosion starting as early as July 23rd.

The Latest: Death toll grows as Israel and Iran trade attacks for third day

The death toll is growing as exchanged missile attacks for a third consecutive day on Sunday, and Israel is warning that worse is to come.

The Stock Ticker Notable Investors Are Holding - Ad

They may not be trading on public markets, but Pacaso just reserved the ticker PCSO. Co-founded by the man who took Zillow from seed to IPO, Pacaso brings co-ownership to a $1.3T market. They've earned $110M+ in gross profits already. Well-known firms like Maveron even invested.

Trump's 'Numbskull' Insult Comes Back To Bite—In Record Time

Oil prices surged after Israel's airstrikes on Iran, reigniting inflation fears and complicating Trump's push for rate cuts. Powell's caution now seems more justified.

How Senate Republicans want to change the tax breaks in Trump's big bill

WASHINGTON (AP) — House and Senate Republicans are taking slightly different approaches when it comes to the tax cuts that lawmakers are looking to include in their massive

Maverick Trader Reveals 97% Accurate System - Ad

This man's simple strategy makes money in any market...With a 97% accuracy at hitting winners over the past 8 years!

Arrive AI (ARAI) Stock Skyrockets 79% On New Climate-Control Patent

Arrive AI stock is skyrocketing over 114% after the company announced a new patent. Its new patent enables smart mailboxes to heat or cool time-sensitive package deliveries.

Driverless 18-Wheelers Could Soon Take Over American Highways - Ad

Driverless trucks are already hauling freight between Dallas and Houston-over 2M miles logged, 7,000+ deliveries made. Nvidia is building the AI brain, but one $7 company provides the radar, lidar, and software powering it all. This could be a breakout winner.

Will Rising Stars Circle, CoreWeave Perform Like Past IPO Winners Reddit, Astera Labs?

CoreWeave saw a massive rally following its late March debut and Circle I burst onto the scene last week with its successful IPO. 

Dundee To Acquire Adriatic Metals In $1.25B Deal For Bosnian Silver-Zinc Mine

Dundee Precious Metals (OTCPK: DPMLF) has signed a deal to acquire UK-based Adriatic Metals (OTC: ADMLF) for $1.25 billion.

Elon's New Tech Bigger Than "DOGE Dividends"? - Ad

Musk's new tech-unrelated to DOGE-could hand Americans an extra $30,000 this year and beyond. While rumors swirl about a $5,000 "DOGE dividend," this breakthrough could be far more profitable. Discover the tiny tech driving the next big market move.

Trump Administration Enforces Long-Dormant World War II-Era Alien Registration Act

The Trump administration has reactivated the Alien Registration Act, a World War II-era law that requires all non-citizens in the U.S. to register with the government and provide fingerprints.

Rocket Lab Stock Is On Investor Radars: What's Going On?

Rocket Lab Corp (NASDAQ:RKLB) shares are up about 7% over the past month. Here's a look at why the stock has captured investor's attention recently.

If You Missed Tesla, Here's Your "Second Chance"... - Ad

If you missed your shot at turning $1,000 into more than $18,000 when I recommended Tesla, you'll want to pay close attention. I'm 100% convinced Elon's "Agenda X" could make early investors rich. But you need to hurry, because Elon and Visa are moments away from launching.

Why Are Central Banks Still Stockpiling Gold?

Central banks continue to increase gold reserves, viewing it as a tool to navigate global uncertainty. Confidence in gold remains strong.

DOGE-Fame 'Big Balls' Is Reportedly Leaving The Government Department Once Headed By Elon Musk — Dogecoin Price Rises

Another key figure at the Department of Government Efficiency, nicknamed “Big Balls”, has reportedly stepped down, following the exit of Elon Musk from the federal initiative meant to reduce wasteful spending.

A 64% Dividend From Gold? - Ad

Gold is soaring. But here's what no one's talking about: a way to earn a 64% dividend-paid in real cash every 30 days. No trading. No risky mining stocks. Just one simple move in your brokerage account... and you could start collecting monthly income almost instantly.

The Senate is putting Trump's big bill back on track but hurdles remain

WASHINGTON (AP) — Senate Republicans appeared Friday to push back on track after a flurry of last-minute revisions, including , but there's still a long way to go ahead of expected weekend votes.

How High Will Gold Surge? - Ad

Gold is on fire - hitting $3,500 and outpacing stocks, tech, even Bitcoin. Analyst Sean Brodrick called it, and now he's forecasting a surge to $6,900. But the biggest opportunity isn't bullion. It's a little-known investment that's returned up to 1,000x more than physical gold.

McDonald's Stock Rises 1% After Key Trading Signal

A significant trading signal occurred for McDonald's stock, as it demonstrated a power inflow at $300.12, after which MCD rose up to 1%.

FDA Expands AbbVie's Mavyret Label To Include Pediatric Patients With Hepatitis C Infection

FDA approves AbbVie's Mavyret for acute hepatitis C, expanding its use to patients 3 and older with or without cirrhosis after positive trial data.

White House Leak: Trump's Secret Bitcoin Plan. - Ad

Leak from a closed-door White House meeting reveals the Trump team may buy up to 1 million Bitcoins-as soon as tomorrow . A special briefing reveals the #1 coin to buy now (not Bitcoin or Ethereum).

Asia shares climb after China and the US say they have a framework for seeking a trade deal

TOKYO (AP) — Asian shares mostly rose Wednesday after . said they had reached agreement on a framework for following up on the trade truce reached last month in Geneva.

How to Hack a $1.3T Market - Ad

Forget concrete. The new foundation for real estate success is digital, and Pacaso leads the way. Their tech unlocks a $1.3T real estate market. They've already earned $110M+ in gross profits in their operating history and reserved the Nasdaq ticker PCSO.

Hasbro Cuts 3% Of Global Workforce: Report

Toy company Hasbro Inc (NASDAQ:HAS) announced a workforce reduction on Tuesday as the company grapples with tariff impacts.

Bernie Sanders Shares First Thing He Would Do As President — And It Could Be A Jab At Elon Musk

Bernie Sanders lost the 2016 and 2020 presidential races. In a recent interview, Sanders shared what he would do first if he were president.

The Tesla Shock Nobody Sees Coming - Ad

While headlines scream "Tesla is doomed"...Jeff Brown has uncovered a revolutionary AI breakthrough buried inside Tesla's labs. One that is helping AI escape from our computer screens and manifest itself here in the real world all while creating a 25,000% growth market explosion starting as early as July 23rd.

Senate Republicans move to slash CFPB funding by half, risking hundreds of job cuts

NEW YORK (AP) — Senate Republicans have moved to cut the funding of the Consumer Financial Protection Bureau by roughly half, as part of President Trump’s “Big Beautiful Bill,” which is likely to lead to hundreds of job cuts at the nation’s financial watchdog agency.

The Stock Ticker Notable Investors Are Holding - Ad

They may not be trading on public markets, but Pacaso just reserved the ticker PCSO. Co-founded by the man who took Zillow from seed to IPO, Pacaso brings co-ownership to a $1.3T market. They've earned $110M+ in gross profits already. Well-known firms like Maveron even invested.

Critical minerals give China an edge in trade negotiations

GANZHOU, China (AP) — China’s dominance over critical minerals in global supply chains was a powerful bargaining chip in trade talks between Beijing and Washington that concluded with both sides saying they to pursue a deal.

Czech president appoints a new justice minister amid a bitcoin scandal

PRAGUE (AP) — Czech President Petr Pavel swore in a new justice minister on Tuesday, another step in a political crisis caused by a bitcoin-related scandal.

Maverick Trader Reveals 97% Accurate System - Ad

This man's simple strategy makes money in any market...With a 97% accuracy at hitting winners over the past 8 years!

Drone debris found in Ukraine indicates Russia is using new technology from Iran

Last week, Ukrainian drone hunters picking up the debris from Russia’s nightly assault on their cities found a weapon that stood out from the rest.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright trendadvisor.net
Privacy Policy | Terms of Service