Longshore workers at ports from Maine to Texas went on strike for the first time since 1977, demanding higher wages and better working conditions, raising concerns about product shortages. But will the strike, which covers more than 45,000 longshoremen at 36 ports along the U.S. Eastern and Gulf Coasts, affect video games?
Short answer: Probably not, at least not in the short term. Wedbush Securities analyst Michael Pachter told GameSpot that nearly all major products made in Asia enter the United States through West Coast ports. Video game consoles such as the PlayStation, Xbox and Nintendo Switch are manufactured in China and enter the United States through West Coast ports. Therefore, the impact of the strike on video game availability is likely to be limited.
The supply of video game consoles has been limited during the pandemic, in part due to global semiconductor shortages and supply chain challenges. These issues affect Microsoft, Sony, and Nintendo, as well as many other video game companies.
The union representing workers on the US West Coast – which itself went on strike for higher wages in 2023 and won – is not the same as the International Longshoremen’s Association (ILA), which is currently on strike. ILA workers went on strike on Tuesday, calling for higher wages and preventing further automation.
Circana’s Mat Piscatella told GameSpot that while he’s not an expert on supply chain logistics, he believes the dock strikes were anticipated by large companies and they stocked up on inventory as much as possible. “At least in the short term, no major disruptions to the supply of video game products are expected as contingency plans are already in place,” Piscatella said.
That said, Piscatella said if the strike lasts longer, “you might see some impact.”
Jay Dhokia, founder of supply chain management and logistics company Pro3PL, told The Associated Press: “If the strike continues, it will cause huge delays throughout the supply chain, with ripple effects that will undoubtedly last until 2025 and lead to disruption across the industry.”
While video game consoles are unlikely to be significantly affected by the recent longshoremen’s strike, the same cannot be said for the delicious potassium-rich fruit. The American Farm Bureau Federation reports that 75% of U.S. banana supplies come from Eastern and Gulf Coast ports, putting bananas and other perishable imported products at risk.
The ILA seeks a 77% pay increase over six years; ILA union workers currently start at $81,000 a year, and those who work significant overtime can earn $200,000 a year or more. The union is also seeking a total ban on automation. The American Maritime Alliance, which represents ports, has fought back with a 50% pay increase over six years and a pledge to limit automation.
President Biden could intervene by enacting an 80-day cooling-off period under the Taft-Harley Act to get people back to work, but the president has said he will not do so.
