S&P Global Market Intelligence comments were reported in the Wall Street Journal (gated).
In brief:
- many importers and manufacturers pulled forward orders to try to get ahead of the looming East Coast port strike now under way
- if not resolved soon, the strike could eventually affect the shipping of 40% to 50% of U.S. imports
- disruptions would surely put upward pressure on goods prices
- in turn complicating the Federal Reserve’s ambition to wind down its fight against inflation
- higher shipping costs to the East Coast in anticipation of the strike have already contributed an inflationary impulse
