Prepare for Price Hikes: Port Strike to Disrupt Car Market

What’s happening?

The International Longshoremen’s Association (ILA), representing 85,000 dockworkers, prepares to strike after failed negotiations with the United States Maritime Alliance (USMX). They are at odds over wages and working conditions, with ILA claiming that foreign-owned companies operating in U.S. ports make billions in profits but underpay American workers.

In a recent statement, the ILA accused USMX of engaging in a “weak publicity campaign” by filing an “unfair labor practice” charge against the union. The ILA countered that the unfair labor practice is caused by foreign companies' exploitation of longshore workers.

If they walk off the job, it will be the first strike of its kind in nearly 50 years. The problem? These ports handle many goods that enter the United States—including cars and critical car parts.

Why should car owners care?

If the strike goes ahead, the supply of new cars could plummet. Many dealerships rely on shipments from these ports. Even U.S.-made cars often include parts from overseas, like transmissions or wheels, that could get stuck in port delays.

Tom Maoli, a car dealership owner in New Jersey, explains that the days of having several months’ worth of cars on hand are over. “If the ports shut down, we are going to burn through the inventory in one month,” Maoli says. That means fewer cars to choose from and higher prices if you’re shopping for a new vehicle.

You might think twice if you’ve been putting off buying a car. Car prices are expected to go up quickly, and with fewer new cars on lots, dealerships will likely lean heavily on selling used vehicles. Unfortunately, used car prices are also expected to rise since there won’t be as many new cars to take their place.

Brian Moody, executive editor at Autotrader, points out that cars made mainly in the U.S. could be affected because many of their parts come from overseas. “If you’re holding off on purchasing a car, you’ll need to repair the one you have,” Moody says. “But if the parts aren’t available, there’s nothing you can do.”

What about repairs?

The strike won't make buying a car harder, but it could also cause headaches for anyone needing repairs. Car parts, from brakes to tires, could become harder to find, leading to delays in getting your vehicle back on the road. Moody recommends that if you need repairs or have a recall, don’t wait. “I would make the appointment and get down there today if possible,” he says.

If the strike drags on, some car owners may wait weeks or months to get the necessary repair parts. This could leave people scrambling to keep their vehicles running smoothly, especially if they need new tires or brake pads.

How long will this last?

The big question is how long the strike will last. Even a short work stoppage could cause major delays in getting cars and parts where needed. The longer the strike continues, the harder it will be for the automotive industry to recover.

So, if you’ve been thinking about getting a new car or need repairs, now might be the best time to act before things get more expensive and frustrating.