A looming port strike and the Hurricane Helene fallout could disrupt US supply chains, cost $5 billion daily and drive prices up, fanning inflation.
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.
