CashNews.co
Dockworkers at ports across the East and Gulf Coasts are on strike. Stamatis Tsantanis, Seanergy Maritime (SHIP) CEO and United Maritime (USEA) CEO, joins Seana Smith and Madison Mills on Catalysts to provide insights into the shipping industry amid the port strike.
Tsantanis tells Yahoo Finance that a number of factors negatively affect the US supply chain, with the strike only adding to the challenges the shipping industry faces. “It’s a combination of a number of negative events because it’s not only the port strike that has been affecting the cargo flows but also the Red Sea disruption. So a lot of things that [are] actually aiming towards the East Coast of the United States have already been diverted around the Cape of Good Hope.”
The ports closed due to the strike and other factors are “negative” for the industry, Tsantanis says. “The cargo flow of consumer goods will be severely affected, and, you know, for the time being, I don’t really see any resolution other than it’s just very bad for the US economy.”
He adds, “The timing couldn’t be better for the workers because there’s maximum leverage. It’s one of the most tied US elections in recent history. And it goes without saying that the workers will try and get the maximum leverage from the government to get what they’re asking for. So if you ask me from their perspective, I believe it’s great timing”
“As for the cost for the US economy, I believe it’s kind of self-evident here. They talk about four and a half to $7.5 billion of losses per week. So I don’t really see how that is not going to be affecting consumer spending and the availability of a lot of products,” Tsantanis outlines.
For more expert insight and the latest market action, click here to watch this full episode of Catalysts.
This post was written by Naomi Buchanan.