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Toilet paper not expected to see direct impacts from port strike: 'People need to calm down'

2024-12-28 03:19:39 Markets

Update: US port workers and operators reach a deal to end East Coast strike immediately on Oct. 3. Read more.

Shoppers who have an urge to jolt out of their homes to buy dozens of rolls of toilet paper in response to the ongoing union dockworker's strike may want to hold off: they could be a part of the problem.

When 45,000 union workers left their jobs on Tuesday due to negotiations for a new contract breaking down, it effectively shut down 36 East and Gulf Coast ports. These ports handled about half of all U.S. imports, and while an abrupt shutdown may trigger flashbacks of the COVID-19 pandemic, bath tissue is not one of the products expected to be directly affected by the strike.

More than 99% of tissue products used by Americans are produced in the U.S., according to North Carolina State's College of Natural Resources. And nearly 90% of U.S. tissue manufacturers use recycled paper to make their products, per the American Forest & Paper Association, the trade group representing paper and wood manufacturers.

“The American Forest & Paper Association is aware of reports of toilet paper shortages, which some have attributed to the current port strike," the group wrote in a statement obtained by USA TODAY. "While we continue to urge the ILA and USMX to quickly bring an end to this strike to restore our members’ access to export their products, we would like to stress we are not aware of any expected impact to tissue product delivery in the U.S."

The toilet paper discussion has prompted at least one grocery chain to issue a statement to tamp down on panic buying.

"Our suppliers’ paper products are made in the U.S. and not impacted by the current port strike," popular Southern store chain Publix said in a statement to local outlet WXIA in Atlanta. "However, our customers can help us and their neighbors by only purchasing the items they need. This will assist in preventing temporary shortages."

Alcohol, bananas, seafood:Which products could be affected by a lengthy port strike?

'People need to calm down and stop buying'

American manufacturers produce billions of rolls of consumer-grade toilet paper each year, which is more than enough for shoppers, Ronalds Gonzalez, an associate professor in the Department of Forest Biomaterials at NC State, told a school publication.

Tissue supply issues arise when consumers panic-buy and deplete the inventory of grocery stores and other retailers, which often only keep several weeks' worth of inventory in their warehouses.

“People need to calm down and stop buying more than what they need to allow inventories to remain stable,” Gonzalez said.

Some toilet paper manufacturers do use eucalyptus pulp, including U.S.-based Georgia-Pacific, Procter & Gamble and Kimberly Clark, according to the College of Natural Resources. Eucalyptus pulp, which is imported from Brazil, contains short fibers that make toilet paper soft and absorbent.

Even if access to eucalyptus pulp is limited, shoppers should at least be able to buy commercial-grade toilet paper made out of recycled paper, according to Gonzalez, who added that even commercial-grade tissue is not immune to panic buying.

“Rest assured, tissue products are being manufactured and shipped – just as they are 52 weeks each year," the American Forest & Paper Association's statement read. "AF&PA members will continue to manufacture these essential products in the U.S and utilize rail and truck to ensure they reach shelves across the U.S.”

What products will be affected by the union strike?

The walkout represents the International Longshoremen's Association (ILA) first strike since 1977. While toilet paper, paper towels, gasoline, crude oil, natural gas, and other liquid fuels aren't immediately expected to be affected, a litany of products could see effects.

Chris Tang, a professor specializing in supply chain management at the University of California, Los Angeles, previously told USA TODAY some items that may experience shortages or price hikes.

  • Seafood: Perishable products like cod from Iceland or Canada and shrimp from Thailand and Ecuador aren't easily transported by train because they need to be refrigerated.
  • Electronics: Cell phones and computers, which now come from Southeast Asian nations like Vietnam, Indonesia, and Thailand instead of China, are routed through East Coast ports.
  • Pharmaceuticals: Although these are easier to ship via air, consumers may notice drug shortages if negotiations can’t be settled within about a month.
  • Cars and auto parts: European cars shipped via container and auto parts often pass through East Coast and Gulf Coast ports. The Port of Baltimore, Maryland, leads the nation in car shipments, according to experts.
  • Machinery parts: The East Coast ports surpass others in the U.S. in shipments of machinery, fabricated steel and precision instruments, according to S&P Global Market Intelligence.
  • Alcohol: Wine, beer and spirits imported from Europe, South America or the Caribbean may run into a shortage.
  • Bananas: About 75% of the nation’s bananas enter through East Coast and Gulf Coast ports, said Jason Miller, interim chair of Michigan State University's department of supply chain management. Moreover, because the fruit is perishable, it's not economical for them to be shipped on planes, Miller wrote in a LinkedIn post.

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