Barbados insulated ‘for now’ from US port workers’ strike

arbados may escape immediate disruption from the ongoing strike by American longshoremen, as business leaders indicate that most shipments to the island come from non-unionised ports.

But, concerns remain about potential knock-on effects on the supply chain in the coming weeks.

The strike, which began on Tuesday, involves more than 45 000 members of the International Longshoremen’s Association, affecting 36 ports along the East and Gulf Coasts of the United States. With the longshoremen demanding a US$5 (BDS$10) hourly wage increase and greater job security due to automation, the walkout has disrupted cargo operations at critical entry points for international trade, prompting fears of supply delays and increased costs for importing countries, including Barbados.

Eddy Abed, managing director of Abeds and Chamber of Commerce member, sought to reassure consumers and businesses.

“The major ship lines that service Barbados do so from non-unionised ports. So there is very little impact, if any, that we expect in terms of disrupting their service into Barbados,” he told Barbados TODAY.

Nonetheless, Abed acknowledged that the island could face secondary impacts, especially if the strike prolongs and affects goods routed through the United States for transhipment.

“The knock-on effect of a strike with the US ports on the East Coast and into the Gulf will have some effect in as much as goods being imported into the US and then trans-shipped back into Barbados,” he said, warning of potential supply chain issues and price increases.

He further explained: “There are bound to be some supply chain issues, and of course with that comes the uncertainty of when goods will arrive, the jockeying for trying to get slots with the various shipping lines, which will absolutely lead to higher costs.”

Abed, who chairs the Chamber of Commerce’s Bridgetown revitalisation committee, noted that while the current disruptions were manageable, they could worsen in the weeks to come.

“We’re probably a few weeks, maybe even a month away from that happening because many of us were pre-warned that this was coming, and we took the necessary steps to sort of delay the inevitable. But we expect very little impact in the short term,” he said.

The businessman noted, however, that US distributors are trying to keep products on domestic shelves, which could affect exports.

“Distributors, wholesalers, and retailers in America that currently have product on their shelves and merchandise on their shelves are trying to ensure that they can stretch it for as long as they can. So we’ve been told that a lot of them are not exporting; they’re being asked to keep it for domestic use only,” Abed explained.

Chairman of the Barbados Private Sector Association (BPSA), Tricia Tannis, struck a more cautious tone, saying that the situation remains fluid.

“I think the retailers and so on here will know how to, based on their individual supply chain routes, assess and advise,” Tannis told Barbados TODAY, indicating that the extent of the impact depends on the specific routes used by individual companies.

“It will very much depend on where the shipments to the Caribbean are being loaded and transhipped,” she said, pointing out that southern US ports are often preferred for transhipment to Barbados, which could make the situation more complex. “That’s not to say that we’re not immune from any impact whatsoever. So that impact has not yet been assessed. And it will very much be dependent on individual shipments and companies and distributors and importers.”

Tannis added that while some southern ports are affected, the primary ports serving Barbados tend not to be heavily used for transhipment to the Caribbean.

“There are some Florida ports being affected as well, so there will certainly be an impact. But the majority of the ports more to the north don’t tend to be heavily used as transhipment points for the Caribbean,” she said.

Both Abed and Tannis stressed that the business community is closely monitoring the situation and implementing contingency plans to mitigate potential disruptions.

The strike has raised concerns among economists, with daily losses estimated between US$3.8 billion ($7.6 billion) and US$4.5 billion ($9 billion). For now, the business community is cautiously optimistic that the island’s supply lines will remain resilient amid the ongoing industrial action. (RG)