For the first time since 1977, dockworkers at ports from Maine to Texas are on strike, demanding higher wages and improved working conditions. This has raised concerns about potential product shortages. However, will this strike, which involves over 45,000 dockworkers at 36 ports along the US East and Gulf coasts, affect video games?
The short answer: likely not, at least in the short term. According to Wedbush Securities analyst Michael Pachter, nearly all major products manufactured in Asia enter the US through West coast ports. Video game consoles such as PlayStation, Xbox, and Nintendo Switch are produced in China and typically arrive via West coast ports. Therefore, the strike's impact on video game console availability may be minimal.
The availability of video game consoles was already strained during the pandemic due to global semiconductor shortages and supply chain challenges. These issues affected Microsoft, Sony, and Nintendo, among other video game companies. Workers on the US West coast are represented by a different union, which went on strike in 2023 for higher wages and succeeded.
The current strike involves the International Longshoremen's Association (ILA), which called for higher wages and protections against increased automation. Mat Piscatella of Circana believes that major companies likely anticipated the dock strikes and stocked up accordingly. "For the short term at least, significant disruption for video game product availability should not be expected as contingency planning was already in place," Piscatella said.
However, Piscatella noted that if the strike continues for an extended period, "some impact could be seen." Jay Dhokia, founder of supply chain management and logistics firm Pro3PL, warned that prolonged strikes would cause significant delays across the supply chain, potentially affecting the industry into 2025.
While video game consoles may not be significantly impacted by the latest dockworker strikes, other goods, such as bananas, could be. The American Farm Bureau Federation reports that 75% of the US banana supply comes through East and Gulf coast ports, making them vulnerable to disruptions.
The ILA is seeking a 77% pay raise over six years, with current base salaries starting at $81,000 per year. Workers who put in substantial overtime can earn over $200,000 annually. The union also wants a complete ban on automation. The US Maritime Alliance, representing the ports, has proposed 50% raises over six years and a pledge to limit automation.
President Joe Biden could intervene using the Taft-Harley Act to enforce an 80-day cooling-off period, but he has stated he will not do so.
