The strikes by dockworkers at major ports along the US East Coast and the Gulf of Mexico will have an impact on India, Indonesia and South Korea, which have an outsized reliance on the striking ports, according to a report by Moody’s Analytics.
“Dockworkers with the International Longshoremen’s Association went on strike on Tuesday , bringing 36 major ports across the US East Coast and the Gulf of Mexico to a standstill. The affected ports handle almost 55% of the container traffic moving in and out of the U.S. and include the largest 14 ports, from Maine to Texas,” said Harry Murphy Cruise, Economist at Moody’s Analytics, in a report.
“Indonesia, India and South Korea also have an outsize reliance on the striking ports, while more diversified trading economies such as Hong Kong, Singapore and Malaysia will be a touch more insulated,” the report added.
According to the Ministry of Commerce and Industry, trade between India and US in 2023-24 stood at $119.71 billion.
Moody’s Analytics highlighted that Cambodia, with around 45% of exports heading to the US and 30% of that traveling through the 14 largest disrupted ports, will be most impacted .
“For Asia, those shortages would be centered on commodities. Crude and refined petroleum make up almost 20% of all exports to Asia from the 14 largest disrupted ports. Soybeans account for around 6%. Vehicles and electronics could also face disruptions if outbound shipments don’t resume soon,” the report stated.