Posted on 02/13/2015 12:01:05 AM PST by SatinDoll
A massive shutdown of America’s supply chain is now in progress because of a labor dispute between dockworkers and their employers. The average dock worker, according to Zero Hedge, makes about $145,000 per year plus some $80,000 per year in benefits, but apparently their overtime pay is insufficient, which has led to widespread strikes at the nation’s busiest ports in Los Angeles and Long Beach.
The ports are now being partially shut down for at least the next four days, but the months-long dispute has already led to hundreds of container ships and tractor-trailers being left in limbo (see pictures below).
Though the strike has been off the radar for most, analysts suggest that the dispute is so severe that it could lead to widespread shortages of imported goods and mass layoffs in periphery industries, especially retail chains which will have limited amounts of goods to sell until a resolution is found.
The Retail Industry Leaders Association who, realizing that failure to reach an agreement between the dockworker union and their bosses, the Pacific Maritime Association representing port management would lead to devastating consequences for the US retail industry, had several very damning soundbites:
“a work slowdown during contract negotiations over the past seven months has already created logistic nightmares for American exporters, manufacturers and retailers dependent on an efficient supply chain. A complete shutdown would be catastrophic, with hundreds of thousands of jobs at risk if America’s supply chain grinds to a halt.“ “A west coast port shutdown would be an economic disaster.” “A shutdown would not only impact the hundreds of thousands of jobs working directly in America’s transportation supply chain, but the reality is the entire economy would be impacted as exports sit on docks and imports sit in the harbor waiting for manufacturers to build products and retailers to stock shelves.”
And the punchline: “The slowdown is already making life difficult, but a shutdown could derail the economy completely.“
Full analysis
The situation, according to the Retail Industry Leaders Association, is dire:
“A work slowdown during contract negotiations over the past seven months has already created logistic nightmares for American exporters, manufacturers and retailers dependent on an efficient supply chain. A complete shutdown would be catastrophic, with hundreds of thousands of jobs at risk if America’s supply chain grinds to a halt.”
The shutdown is a sight to behold. Hundreds of transport ships with thousands of containers of cargo are not being allowed into ports to unload their goods.
Cargoes from around the world are backed up as evidenced by the following aerial photos from Mike Kelley:
It was one of the most exciting experiences I’ve had doing aerial photography – being that far out at sea, with the huge swells underneath you, and these massive, massive container ships everywhere was like living a scene out of Walter Mitty’s life.
The labor union and employers will eventually come to an agreement, perhaps with Presidential involvement, but a prolonged strike will, as noted above, have a disastrous impact on the economy.
We’re written before about what life will look like in the event of a transportation shutdown in Just In Time: When The Trucks Stop, America Stops. As we noted then, a transportation shutdown can lead to nearly immediate and catastrophic consequences.
It appears that this is what is happening now and the effects on a consumer-based economy could be devastating across the board.
We’ve often recommended to readers that they stock up on emergency supplies simply because sometimes unplanned events happen. The current port shutdown is a limited event, but given that even this could lead to serious economic problems and job losses, it’s not a stretch of the imagination to suggest that in a real emergency the shutdown of transportation systems on a national level would lead to a total breakdown and panic within days, perhaps even a few hours.
The reality is that 99% of Americans are not prepared for a sustained shutdown of transportation systems and supply lines. There would be no food or gas to be had. As The Prepper’s Blueprint author Tess Pennington highlights in Anatomy of a Breakdown, once peaceful streets and neighborhoods would quickly be besieged by looters looking for resources.
When the needs of the population cannot be met in an allotted time frame, a phenomena occurs and the mindset shifts in people. They begin to act without thinking and respond to changes in their environment in an emotionally-based manner, thus leading to chaos, instability and a breakdown in our social paradigm.
It is for these unforeseen circumstances that we urge Americans to prepare for the worst. The last thing you want to be doing is looking for food and other essential supplies after a supply shutdown has occurred.
manufactured by workers getting slave wages and conditions. causing the draining of US manufacturing jobs. While the dockworkers and CEOs get the big paychecks.
Wouldn't it be great if US consumers finally woke up and demanded manufacturing come back to the US? Then we wouldn't be at the mercy of dockworkers who get over $150,0000 a year and want more.
So don't worry you will be able to get your lead and mercury contaminated Asian seafood soon.
Chinese made auto parts are crappola! Don’t buy them. Always ask the parts guy where they are made. They have to tell you. Buy USA, German and Japanese parts only. Taiwan made stuff can be good but be careful.
Imagine an America without Chinese junk ...
Go to your local Salvation Army store, you might find a few still made in the USA items.
I gave up long ago buying any thing but T’s and jeans from box stores. Shoes I have to order. No one carries a size 5. UNLESS you are in Las Vegas then you can find them.
Why would I want to buy cheap RAGS? that won’t make it past 2 washings and bleed the dyes?
I agree.
Too many phony stories of Obama’s economy “booming” before the election.
The one thing that was actually generating job growth and keeping the economy from complete collapse was the oil business and it’s collapsed, now this.
Just a coincidence isn’t realistic, it’s planned and it will be blamed on the republicans.
The Republican connection will be that they are now running (and ruining) Congress!
Sure there are the plastic chotzkies - but there are also medical devices (rollators, wheelchairs, canes, crutches), box mattresses, castings, electronics, on and on...
Some of it has shelf lives and may end up worthless - acid batteries come to mind - if they aren’t trickle charged (typically within 6 months of manufacture) then they can’t be recovered.
Oh crap no star fruit in Kroger. We will have to eat a Georgia grown apple. Woe is me. LOL!
~Ping
America’s Supply Chain Is In Shutdown: “Could Derail The Economy Completely”
"If this happened under a Republican, the press would be crucifying them and this would be the top story every night until the left got him to cave.
Under comrade muzlim o-bama, nothing."
(The Cloward–Piven strategy involves draining and overloading the system, in order to get the political change they want.)
” Then we wouldn’t be at the mercy of dockworkers who get over $150,0000 a year and want more. “
The most overpaid people in America.
Outside of D. C.
The plan is to offload this stuff in Mexico and ship it to the US on NAFTA trucks.
It just takes a while to implement.
IIRC Last time this happened W intervened Don’t expect O to figure it out. Too busy taking selfies
O is 100% for any unions.
No help here.
Yeah....
Time for Walmart to go back to featuring “made in USA” products.
WAY time!
Too many here can never see it that way. They only see booing China and Russia rather than the whole picture.
“Zerocare is at the heart of this. The heavy tax on quality medical plans has pushed the costs so high they can’t afford Cadillac care for the union rank and file any more. I noticed this article conveniently leaves this little tidbet of truth out. I’m shock, shocked to see such an oversight. (That’s sarcasm in case you did not catch my gist).”
Trafficking in the selling of Human Body Mortgages by so called “insurance-banking.”
Besides Unions, Post Sam Walton era Walmart was & is the main force in driving companies off shore. For their everyday low price of course. Walmart hasn't been pro-Made In USA company since right after Sam Walton died. A big push came from new management to push manufacturing off shore and Walmart corp became a lot more PC.
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