What has been dubbed a case of deja vu from the pandemic-induced buying frenzy, shoppers across North America have started stockpiling toilet paper all over again. The panic buying this time is a reaction to a currently ongoing labor strike at key West Coast ports that is heavily disrupting supply chains.
The strike, entering its second week, includes dockworkers seeking better wages and working conditions at a chain of ports from California into the Pacific Northwest. Those same facilities are important contact points for consumer goods, their continued inactivity raising eyebrows amongst consumers and retailers alike.
Supply chain experts also warn that the turmoil is exacerbated by the lingering influence of earlier disruptions linked to COVID-19, which proved how quickly store shelves could be cleaned out. As supply becomes scarce, panic ensues and consumers are driven to buy in bulk, further straining the system. Items reportedly particularly hard-hit include toilet paper, canned goods, and cleaning supplies due to their perceived necessities and past panic-buying trends.
Retailers are preparing for an omnishambles holiday season, as the strike appears to extend the shortages, forcing them to seek alternatives. Some have increased their imports through gulf and east coast ports, while others called on customers to remain calm and assured them of adequate supply in the warehouses and backroom storage.
The particularly distressing fact for economists is that the strike has come at a really bad time. This coincides with preholiday shipments-a period when business traditionally booms. A long strike could mean shortages that might extend beyond the beginning of the new year.
This recent development underlines the fragility that still exists in global supply chains, the modernization of which, along with contingency planning, is required to cope better with such eventualities in the future. Until the resolution comes through, the negotiations between the dockworkers and port authorities are being keenly watched by all stakeholders in the industry for an amicable solution, with a settlement to come through as quickly as possible.
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Author: Samuel Brooks
