The distilled spirits industry is seeing a negative impacts from the dockworkers strike – and it could get worse, Chris Swonger of the Distilled Spirits Council of the United States (DISCUS) told Fox Business.

Swonger told the news outlet that the industry is “very dependent on the vitality of the U.S. port system” and that even a short-term stoppage will cause negative ripples through the supply chain. 

Thousands of dockworkers went on strike Monday when they were unable to reach an agreement with U.S. Maritime Alliance (USMX) on a new contract. The dockworkers are representged by the International Longshoremen’s Association (ILA).

The dockworkers strike affects ports that handled 77% of U.S. distilled spirits exports and 43% of imports last year, per DISCUS. Spirits like American whiskey, cognac, Scotch whiskey, Irish whiskey, gin and some liqueurs would all likely be impacted the longer the contract dispute remains unresolved.

“If, in fact, this strike continues for the long haul – a week or so, a couple of weeks, God forbid – it could ultimately have an impact on the industry’s top-selling season,” Swonger told Fox Business. October through December, he said, is when holiday spirits sales soar. 

“So if this strike continues,” he added, “it could not only have a detrimental impact on the economics of the industry, but it can ultimately have a detrimental impact on consumers who love to savor great distilled spirits brands.”

Swonger called for both sides to come together and find a resolution as quickly as possible.

He said DISCUS member companies are searching for alternative shipping methods “Because no one knows how long the strike is going to be, and that just adds costs into the systems, so that could also have an impact on consumers.”

Fox Business reported earlier this week that JPMorgan projects if the strike continues at the affected ports, it could cost the economy up to $4.5 billion per day.

TheSpiritsBusiness.com reported that the ILA said: “The ocean carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA longshore workers an unacceptable wage package that we reject.”

(Photo by George E. Koronaios/Wikimedia Commons)

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