Time to Stock Up on Booze: Port Strike Threatens to Affect Liquor Imports

Five ship-to-shore cranes and gangs of longshoremen work the container ship YM Witness at the Georgia Ports Authority’s Port of Savannah, Sept. 29, 2021, in Savannah, Ga. (Photo: AP Photo/Stephen B. Morton, File)

Nearly 50,000 dockworkers from Maine to Texas went on strike early Tuesday morning, sending the alcohol industry into a panic as brands scramble to prevent looming shortages.

Unionized employees, represented by the International Longshoremen’s Association, have come to a standstill on contract negotiations with the U.S. Maritime Alliance. Points of dispute include wage increases and assurances against automation. A final proposal made hours before the walkout deadline was reportedly rejected by the ILA, who claim that “demands for a fair and decent contract” have gone unmet.

As of 12:01 am on Tuesday, 36 ports along the East Coast and Gulf of Mexico had shuttered their doors. The affected ports total half of the nation’s ocean shipping capacity.

A J.P. Morgan analysis projects that the walkout could cost the U.S. economy as much as $5 billion per day. At a Monday news conference, New York Gov. Kathy Hochul added that the “stakes are very high,” though assured the public that grocery stores and medical facilities will remain stocked with essential products for the foreseeable future.

Were the strike to last longer than a month, experts predict that bananas, coffee, chocolate and vehicles would be among the hardest hit. Chris Swonger, CEO of the Distilled Spirits Council, says that booze may too fall victim to a shipping shutdown.

“This potential strike comes at the worst time,” Swonger told CNN on Sunday. “We’re leaning into the big selling time of the year for spirits, leading into the holidays. Even a day strike could have significant repercussions […] “You could see impact at the liquor store within the month, depending upon the inventory.”

Here’s which products may face shortages before the end of the year:

First and foremost comes French exports, namely wine, champagne and cognac. Throughout 2022, the U.S. imported $2.67 billion in hard liquor and $2.55 billion in wine from France, with recognizable names like Hennessy, Moët & Chandon and J.P. Chenet leading the pack. In the event of a strike, however, some brands would be affected more than others. Since retailers have already stocked up on their holiday inventory, “giftables” like high-end cognac and champagne would likely remain safe until at least January.

Other markets include the U.K., responsible for $1.76 billion in hard liquor imports, and Ireland, responsible for $485 million. The countries are best known for scotch and Irish whiskey.

It’s unclear what to make of tequila. A handful of affected ports, particularly those in Louisana and Texas, move large volumes of Mexican imports, though the primary products are reportedly industrial chemicals and auto parts. Whether or not suppliers can pivot to on-land shipping is yet to be seen. The same question will be posed for Canada.

In other words, no need to stock up on Crown Royal or Jose Cuervo just yet.

Bacardi, however, might be a name to look out for. Ninety percent of rum consumed in the U.S. is imported, primarily from Caribbean countries and territories like Puerto Rico, the Dominican Republic, Barbados, Jamaica and Bermuda. Beers like Modelo, brewed in Mexico, and Heineken, brewed in the Netherlands, may also take a hit.

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