Hurricane Damage and a Port Strike Could Deal a Blow to the US Economy

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A looming port strike and the aftereffects of Hurricane Helene could slow the US transport of goods.The strike could involve 45,000 dockworkers demanding higher wages and start October 1.The combined disruptions could cost $5 billion a day and worsen inflation, analysts say. Thanks for signing up!

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By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy. You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. The US could be entering a hellish period for moving goods around huge swaths of the country.

Hurricane Helene has killed nearly 100 people and left devastation across several states, including widespread flood damage that could leave cities like Asheville, North Carolina, without running water for weeks.

The flooding, plus debris including fallen trees, has made many roads and highways impassable, or at least tricky to traverse, across the southeast.

Now, a looming port strike could also conspire to slow the transport of critical goods and supplies into, out of, and across the US — and, as a result, deal a devastating economic blow.

A strike among dockworkers stretching from the East Coast to the Gulf Coast could start Tuesday. The International Longshoremen's Association said Sunday it was prepared to strike on October 1. The nation's largest union of maritime workers is demanding higher wages, among other conditions.

Jon Davis, chief meteorologist at Everstream Analytics, which focuses on supply-chain risk, told Business Insider that the storm and the possible strike would have massive "compounding effects."

"It's not one plus one equals two. One plus one equals a lot more than that," he said.

JPMorgan analysts have estimated that costs from shutdowns related to the strike could climb to $5 billion a day.

It would be the first to span an entire US coast since 1977 and would involve ports that account for about half of the country's ocean shipping. Some 45,000 workers could lay down their metaphorical tools; on top of the catastrophic damage to infrastructure in hard-hit states like Florida, Georgia, and North Carolina, it would undoubtedly slow the movement of critical goods, including food and vehicles.

An inflation driver Any slowdowns in the US's critical supply chains could also fan inflation at a time when the Federal Reserve has begun to lower its benchmark interest rate to avoid tipping the economy into a recession. Price increases have cooled year over year, though they remain high for certain goods like eggs, which have spiked because of bird flu.

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Hurricane Damage and a Port Strike Could Deal a Blow to the US Economy

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