Most of us are bias towards the industry that supplies our income, for many it may not start that way because people look for a job to use their skills. An opportunity arises or someone wants to hire you is the industry and you find there are many opportunities and challenges with it. In a few years you begin to think and believe you can make a career in the industry, maybe not where you started but somewhere in the industry. If you look for a job your first area is the industry where you were employed with. It is normal, most of us have done it. One method to learn about other industries are labor strikes, what is the impact of the industry on the economy?

In an article by Doyinsola Oladipo and David Shepardson of Reuters, in October, the US dockworkers went on strike. On YouTube there are videos of Chinese docks and much of its mechanized, if you were the owner of the dock, you would look to China for the future. If you are a dockworker, you would want to negotiate long term employment contracts and what to do with you if and when the company replicates China’s ports.

The International Longshoremen’s Association union represents about 45,000 port works and their opposite side is the US Maritime Alliance representing the owners of the ports. The union wanted a 6 year deal and hourly rates to raise from $39 a hour to $60 a hour.

As this is Presidential election season, both candidates said they were in favor of the unions, although President Biden is likely more committed.

The walkout affected 36 ports on the east coast and JP Morgan Chase estimated the walkout would cost the US economy $5 billion a day.

Retailers accounting for about half of all container shipping volumes had expected a strike and were busy implementing plans to minimize the impact of a strike. Many of the big players rushed in Halloween and Christmas merchandise early to avoid disruptions but had to pay extra costs to ship and store the goods.

Both Walmart and Costco say they are doing everything they can to mitigate any impact.

French shipping group CMA CGM, the world’s 3rd largest container shipper, said it may charge additional shipping fees for delayed vessels.

The National Retail Federation called on the President to use its federal authority to halt the strike saying the walkout will have devastating consequences for the economy.

Linking to dividend paying stocks, all large profitable companies should have plans A.B, and C when something goes wrong. Whether it is strikes or weather-related events or another scenario, how well they react and adjust tells you whether you wish to continue to hold the investment. It is not the good times, it is the possible negative times that tell you the most about the industry and your possible investment.

There are more questions than answers, till the next time – to raising questions.