Costco prepares for possible looming port strike
Another major strike is potentially about to begin.
The Associated Press reports that 45,000 dockworkers are expected to walk off the job at midnight — and shut down ports across the East and Gulf coasts.
According to the AP, the union representing those dockworkers and the group representing the East and Gulf Coast ports have exchanged wage offers, leaving a ray of hope that a deal can be reached without a major work stoppage.
A work stoppage would significantly snarl the nation’s supply chain, potentially leading to higher prices and delays in goods reaching households and businesses if it drags on for weeks.
Despite talks of a deal, Issaquah-based retailer Costco says it has taken steps to prepare for this possible imminent strike.
Costco addressed the possibility of a longshoreman strike during its earnings call on September 26, with CEO Ron Vachris saying they’re pre-shipping holiday products to get them early — and preparing to use different ports.
“The port strike is something we’ve been watching very closely for some time,” said Vachris. “We’ve taken as many preemptive measures as we could to prepare for this.”
If the International Longshoremen’s Association does move forward and begin their strike at 12:01 a.m. Tuesday, the move could silence ports that handle about half the ship cargo coming in and going out of the U.S.
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