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The biggest early holiday sales will start in less than one week, but the latest dockworkers’ strike could change your shopping plans.
Roughly 45,000 longshore workers across 14 ports along the East and Gulf coasts have walked off the job and shut down the ports until an agreement is reached between the International Longshoremen’s Association and the United States Maritime Alliance. Port workers are demanding job security, a wage increase and protections against automation.
The Port of Virginia said in a statement on its website: “At this time, it is unclear how long this work stoppage will last.”
Closing these ports disrupts the supply chain by halting imports and exports of consumer goods, including food, alcohol, electronics and automobiles, for half the country’s ocean shipping. A long-term paralysis of shipments could lead to higher prices and limited merchandise availability before the holidays. Some analysts say the strike could cost the US economy as much as $5 billion per day.
Here’s what experts say the strike means for your holiday shopping deals and deliveries for now.
Shop early
The port workers’ strike is coming days before early holiday sales, like Amazon’s Prime Day sale, Target Circle Week and Walmart’s Holiday Deals.
You can still expect these sales to happen, and there won’t be significant changes overnight. However, the longer the disruption at the ports, the bigger the impact on everyday goods and holiday items. You may start to see higher prices and shortages of big-ticket gifts.
“You might notice some holiday items, like toys and electronics, are harder to find than in previous years if the strike continues,” said Chad Gammon, a certified financial planner and owner of Custom Fit Financial. “If there is a specific item you are looking for, it might make sense to buy earlier than you would have in the past.”
If the strike lasts and inventory can’t be delivered, availability won’t be the only issue. Retailers will likely increase prices, said Lawrence Sprung, a certified financial planner and founder of Mitlin Financial.
“Supply and demand are a major factor in prices, and if supply goes down significantly and demand remains the same or goes higher, I would expect that prices will follow,” said Sprung. “This can certainly force retailers to increase prices around the holidays and impact their overall sales negatively.”
Sprung recommends budgeting based on what prices work for your household finances, not on the sale (or lack thereof).
Don’t let panic lead you to overspending
Uncertainty over the availability of goods can lead to panic purchases, impulse buying and overspending. It may be tempting to rush to buy essentials and gifts to avoid worrying later.
Yet the news of a pending strike could have given retailers time to prepare.
“Shippers may have adjusted by shifting deliveries from the East Coast to the West Coast in anticipation of the strike,” said Gammon.
Retailers will likely continue offering holiday pricing and sales for now. Stick to your plan for buying gifts and goods and compare prices for the best deal when you’re ready to buy. If the strike ends in the coming weeks, there may be room in your budget for more gift-buying as the holidays approach.
Sprung recommends closely examining your budget for the rest of the year, including how much you plan to spend for the upcoming holidays. If you can, start shopping early to circumvent shipping delays and put guardrails in place to avoid overspending.
Even if the strike continues for a while, you shouldn’t go outside your spending budget. Instead, consider affordable alternatives you can get in time for the holidays, said Sprung.
