On the East Coast and in the Gulf of Mexico, an unprecedented strike involving 45,000 dockworkers across 36 ports began on the first of the month, marking the first such action in 47 years and significantly disrupting the supply chain. New York Governor Kathy Hochul addressed this situation, emphasizing that her administration is focused on keeping supply chains operational in both New York and New Jersey. “We are committed to making sure supermarkets and healthcare facilities have the supplies they need,” she stated. Hochul urged both labor and management to reach a resolution and cautioned New Yorkers against panic buying, warning that such behavior could exacerbate supply shortages and drive prices up.

Upon learning about the strike at the end of last month, Hochul noted that the state government swiftly activated contingency plans. Both state officials and manufacturers have taken preventive measures to avoid the kind of supply chain disruptions witnessed during the COVID-19 pandemic. Currently, around 100,000 containers are stuck at the ports of New York and New Jersey, and the governor reassured the public that efforts are underway to efficiently unload those containers.

Hochul pointed out that New York’s food supply has significant dependencies on sources from Canada, California, and Mexico, reassuring residents that there are no immediate concerns regarding availability. She also mentioned that the majority of medical supplies, including pharmaceuticals, are transported by air and therefore are not expected to be impacted by the strike.

Experts have suggested that this could be one of the most severe strikes in U.S. economic history, with JP Morgan estimating daily losses could hit as much as $50 billion due to the disruptions. Sectors such as construction, automotive, and certain imported consumer goods are anticipated to be heavily affected. Hochul aimed to ease public concern by stating that prices for gas, natural gas, and oil are not expected to rise because of the strike.

However, Matthew Shay, CEO of the National Retail Federation, warned that the strike might create a “ripple effect,” leading to potential shortages that could reignite inflation. In response, the Biden administration stated on the second that while they would not intervene in the strike, they also do not support it.