Port strike panic buying? Costco toilet paper frenzy making the rounds on social media
PHILADELPHIA - Empty shelves and carts full of toilet paper, paper towels and bottled water.
No, we aren't talking about grocery trips during the 2020 pandemic - these are reportedly the scenes at super stores and grocery stores this week.
Videos posted online claim that toilet paper is sold out at Costco stores from Arizona and Colorado to New Jersey, with one worker saying their stock was cleared one hour after opening.
Customers are comparing the frenzy to the toilet paper panic buying that took over the US during the peak of the pandemic.
"The great toilet paper 2.0 shortage has started at Costco," one TikTok user said.
Why are people panic buying?
The rush to buy is in response to thousands of dockworkers going on strike Tuesday, shutting down 36 ports along the East and Gulf coasts.
Experts say the shutdown could cause a hike in prices, and even a shortage of some goods. But will toilet paper be affected?
Where is toilet paper manufactured?
The majority of toilet paper used in the United States is made in the US, with only minor imports from Canada and Mexico, according to Scott Brand.
How will the strike affect consumers?
FOX 29's Jennifer Lee spoke with Dr. Subodha Kumar, Professor at FOX School of Business at Temple University who says the port strikes won’t have much of a short-term impact on consumers and absolutely none on the supply of toilet paper.
"Almost all of the toilet paper that is sold in the U.S. is made within the country. The items are not imported from these ports," said Dr. Kumar. "Customers have no reason to be panicked. We are not getting out of toilet paper at all because of this strike. They are two unrelated events."
Dr. Kumar says we may start noticing empty fruit and vegetable shelves or higher prices in a week or two and if the port strikes persist, auto supplies and cars in four to five weeks she says in the end panic buying may disrupt the supply chain more.
"It’s a knee-jerk reaction and unwarranted reaction because most of the items the retailers were very prepared for it and they had planned for it in advance." said Dr. Kumar.
Ryan Sunderlin, a buyer at Coosemans Philadelphia, says the unknown of how long the strike will be is already causing costs to skyrocket on imported items.
"You’re seeing anywhere from a 20 to 200 percent increase in pricing due to the scarcity, knowing you won’t be able to get any in who knows how long," Sunderlin said.
That means the cost will then fall on the consumer.
"It’s going to increase the price of food, fruits and vegetables, anything that is on ship that can’t be loaded in a timely manner," said Mark Levin the CEO of M. Levin & Company Inc.
Port strike 2024: Which products could face shortages, price hikes?
If drawn out, the strike would force businesses to pay shippers for delays and cause some goods to arrive late for peak holiday shopping season.
What are the issues?
The International Longshoremen’s Association is demanding significantly higher wages and a total ban on the automation of cranes, gates and container-moving trucks that are used in the loading or unloading of freight at 36 U.S. ports. Those ports handle roughly half of the nations’ cargo from ships.
The contract between the ILA and the United States Maritime Alliance, which represents the ports, expired Tuesday. Some progress was reported in talks late Monday, but the union went on strike anyway.
The union’s opening offer was for a 77% pay raise over the six-year life of the contract, with President Harold Daggett saying it’s necessary to make up for inflation and years of small raises. ILA members make a base salary of about $81,000 per year, but some can pull in over $200,000 annually with large amounts of overtime.
Monday evening, the alliance said it had increased its offer to 50% raises over six years, and it pledged to keep limits on automation in place from the old contract. The alliance also said its offer tripled employer contributions to retirement plans and strengthened health care options.
What does the port strike affect?
Now that thousands of port workers have gone on strike, FOX 29's Greg Payne has the scoop on how the strike could hurt businesses and consumers amid supply chain disruptions.
The port strike is affecting operations at 36 U.S. docks stretching from Maine to Texas, which means the number of goods coming in and out of the country will begin lessening by the day.
Just how long the strike lasts depends on how severely the supply chain could be affected.
If drawn out, the strike would force businesses to pay shippers for delays and cause some goods to arrive late for peak holiday shopping season — potentially impacting delivery of anything from toys or artificial Christmas trees, to cars, coffee and vegetables.
Americans could also face higher prices as retailers feel the supply squeeze.
"Everyone from the shipping lines to trade groups and maritime industry analysts also warns of widespread ramifications in the global supply chain," reported The Maritime Executive, a maritime industry magazine and newsletter. "Sea-Intelligence has estimated that for each day of a strike, it would take four to six days to clear the backlog. They wrote that even a two-week strike could have ramifications into 2025."
FOX Business reported that JP Morgan issued an estimate that a strike would cost the U.S. economy as much as $5 billion a day.