Americans needlessly panic-buying toilet paper, but real port strike shortages loom

CRAIG NIGRELLI: THE ONGOING U-S PORT STRIKES ALONG THE EAST COAST AND GULF OF MEXICO ARE CAUSING PANIC AMONG CONSUMERS, LEADING TO EMPTY SHELVES IN MANY STORES. BUT IT TURNS OUT… PEOPLE MAY BE PANICKING ABOUT THE WRONG PRODUCTS.

TOILET PAPER SHORTAGES ARE BEING REPORTED ALONG THE EAST COAST… INCLUDING COSTCO AND WALMART STORES IN NEW JERSEY 

DESPITE THESE REPORTS, THE STRIKES ARE NOT AFFECTING THE SUPPLY OF PAPER PRODUCTS. IN FACT… AROUND 90-PERCENT OF THE U-S TOILET PAPER SUPPLY COMES FROM DOMESTIC FACTORIES OR IS TRANSPORTED FROM CANADA AND MEXICO BY RAIL, MEANING THESE PRODUCTS ARE NOT DIRECTLY IMPACTED BY THE STRIKES. THIS PANIC BUYING, FUELED BY FEAR AND MEMORIES OF THE 2020 SHORTAGES, IS NOT LIKELY TO HAVE ANY EFFECT ON PAPER SUPPLY CHAINS. 

HOWEVER… THE STRIKES ARE IMPEDING THE SUPPLY CHAIN OF A MORE VITAL IMPORT. ALMOST 100% OF THE BANANAS CONSUMED IN THE U-S ARE IMPORTED, AND MORE THAN HALF OF THOSE IMPORTS COME THROUGH THE PORTS NOW AFFECTED BY THE STRIKE. ONE KEY ENTRY POINT IN WILMINGTON, DELAWARE HANDLES OVER 25-PERCENT OF THE COUNTRY’S BANANAS. IN 2023… THE U-S IMPORTED OVER 11 BILLION POUNDS.

WITH BANANAS BEING LOW-VALUE AND HIGHLY PERISHABLE… LASTING JUST A FEW WEEKS FROM TREE TO TABLE… IT’S IMPOSSIBLE TO STOCKPILE THEM AHEAD OF TIME. AS THE STRIKE DRAGS ON, WE’RE LIKELY TO SEE A SHORTAGE OF BANANAS IN GROCERY STORES ACROSS THE COUNTRY.

PRESIDENT BIDEN IS URGING BOTH SIDES TO COME TO A FAIR AGREEMENT… HE DECLINED TO INVOKE THE TAFT-HARTLEY ACT AT THIS TIME, WHICH GRANTS AN 80-DAY COOLING PERIOD ON STRIKES THAT AFFECT NATIONAL HEALTH AND SAFETY.

AS THE STRIKES CONTINUE… ANALYSTS PROJECT A WIDE SPECTRUM OF ESTIMATES ON THE TOTAL ECONOMIC IMPACT… RANGING FROM 500 MILLION UP TO 5 BILLION DOLLARS A DAY. 

FOR MORE UNBIASED UPDATES AND STRAIGHT FACTS… DOWNLOAD THE STRAIGHT ARROW NEWS APP OR VISIT SAN DOT COM.

FOR STRAIGHT ARROW NEWS… I’M CRAIG NIGRELLI.