Time’s Up: How the Impending East Coast Port Strike Could Impact the Footwear Industry

A potential strike on the East and Gulf Coast ports is putting the footwear industry at risk.

Unionized dock workers are preparing to go on strike early Tuesday morning if a deal with the dockworkers at the International Longshoremen’s Association (ILA) and their employers, the United States Maritime Alliance (USMX), fails to come to fruition. According to footwear industry trade groups, a strike in these crucial ports could have various negative consequences for shoe retailers and consumers.

According to the American Apparel & Footwear Association (AAFA), 40.26 percent of U.S. footwear was imported through the East and Gulf coast ports in 2023, for a total value of $10.5 billion. In the first seven months of 2024, $5 billion worth of shoe imports made its way through these ports, representing 32.04 percent of U.S. imports during that period.

“While many footwear companies have been able to bring in goods early or move them through alternative channels, at least one-third of our footwear still steps ashore through an East or Gulf Coast port,” AAFA president and CEO Steve Lamar said in a statement to FN. “Tying these goods up, just as we hit our holiday season, will be a terrible blow for our industry and economy.”

AAFA, The National Retail Federation (NRF), the Footwear Distributors and Retailers of America and other industry groups urged the White House to help the parties resume contract talks in a letter to the Biden administration earlier this month.

According to Andy Polk, senior vice president of the FDRA, many retailers have already made arrangements to divert their shipments to ports on the West Coast in the event of potential East Coast strikes. He added that some companies had also already moved up their shipments to earlier dates to ensure product landed in the U.S. before any potential tariff disruptions from the upcoming presidential election could occur.

“Some people saw this coming and have the ability to deal with it more effectively than it was in the past,” Polk said, noting that ports on the West Coast have more capacity to be able to deal with some level of diverted product.

The bigger issue, Polk said, is the potential impact the strike could have on container costs, and by extension, shoe inflation. While he noted that most holiday products have already arrived, higher costs will be at risk if a deal to avoid a strike is not met. In August, shoe prices declined for the first time in a year, according to FDRA.

“Anything that has any kind of impact on any of the links in the supply chain will have an impact on cost,” Polk said. “I think we’ll start to see container rates increase a little bit as a shipping companies have to pivot as well.”

The Retail Industry Leaders Association’s (RILA) president Brian Dodge also noted in a Monday statement that product availability will likely not be an issue in the near-term. But a strike could cost the U.S. economy over $4 billion a day.

“Shoppers can rest assured holiday merchandise will be on shelves; however, the longer this work stoppage goes on, the harder it will become to shield customers from its effects,” Dodge wrote. “Even though leading retailers have prepared for disruptions, the U.S. economy is likely to see immediate impacts from even a short-lived strike.”