Widespread Port Strikes In U.S. To Disrupt Trade With India, Asia: Moody’s Analytics

ENA Global 2024-10-03 16:03:16 New Delhi, Oct 3 (KNN) A widespread strike affecting 36 ports along the U.S. East Coast and Gulf of Mexico could have significant repercussions for trade flows from Asian countries, according to a report released Wednesday by Moody's Analytics. The analysis highlights that India is among four nations with high exposure to the affected ports, which have ceased operations. The International Longshoremen's Association-led strike has impacted ports handling approximately 55 per cent of U.S. container traffic, including the 14 largest ports in the region. The extent of disruption will largely depend on the strike's duration, with Asian producers potentially facing the brunt of the impact if their shipments to the U.S. are affected. According to the Moody's Analytics report, over 20 per cent of total Asian seaborne exports to the U.S. transit through the 14 largest affected ports, representing nearly half of total inbound trade. Countries with high export concentration to the U.S. and significant reliance on the disrupted ports are most vulnerable to the strike's effects. While Cambodia is expected to be the most severely impacted, India, Indonesia, and South Korea also have outsize reliance on the striking ports. These three countries have a reasonable export concentration to the U.S. coupled with high dependence on the affected ports. This marks the first strike on America's East Coast ports since 1977, when a similar union action lasted 44 days. The report outlines potential consequences of the strike. If resolved within one to two weeks, macroeconomic impacts are likely to be minimal. However, a prolonged strike could lead to widespread disruptions, including backlogs, shortages, and increased price pressures. For Asian countries, shortages may primarily affect commodities such as crude and refined petroleum, as well as electronics imported from the U.S. As negotiations continue, the global trade community watches closely, aware of the potential far-reaching implications of this labour dispute on international commerce. (KNN Bureau) 39478 https://knnindia.co.in/news/newsdetails/global/widespread-port-strikes-in-us-to-disrupt-trade-with-india-asia-moodys-analytics 2024-10-03 16:03:16 knnindia.co.in Widespread Port Strikes In U.S. To Disrupt Trade With India, Asia: Moody’s Analytics