Panic Buying of Toilet Paper Triggered by Dockworker Strike

Reminiscent of the panic buying at the beginning of the COVID-19 pandemic, consumers are once again stocking up on toilet paper and paper towels. Yet, this time around, it’s due to uncertainty related to the dockworker strike affecting East and Gulf Coast ports.

Stores nationwide are having a tough time keeping up with the renewed demand for paper towels and toilet paper. As a result, consumers are rushing to stores only to be met with empty shelves in the paper products aisle. The shortages are likely fueling the panic-buying mentality.

In reality, the port strike should not directly affect paper product supplies. According to CNN, approximately 90% of U.S. toilet paper is manufactured within the country. As for the rest, these products usually come by truck or train from Canada or Mexico. Essentially, most toilet paper products don’t go through the ports.

It will actually be exports of toilet paper and paper towel products impacted by the strike. Without the ability to ship overseas, paper product manufacturers will end having too much inventory sitting without any place to put it. Toilet paper is more likely to be in surplus, not in short supply.

The Port Strike Only Affects the Import of Certain Products

Imported items like electronics, cars, fruits, vegetables, and seafood will likely be the most impacted by the dockworker strike initiated by the International Longshoremen’s Association (ILA). Changing supply routes for these types of imports is not only costly but also complicated, which can lead to shortages and price volatility.

“Goods with high price elasticity, including luxury goods, consumer tech products, automobiles and apparel — largely imported from Asia and Europe — could see price increases,” said Jason Fisk, CEO of SalSon Logistics, per Newsweek.

America’s favorite fruit, the banana, is imported and often comes through ports currently shut down by the strike. Of course, bananas are perishable, which means the fruit will rot on the dock if there are no workers to move them. It’s bananas, as well as other imported fresh fruits, that are directly affected by the dockworker strike.

Depending on how long the dockworker strike lasts, consumers may see shortages of imported products within weeks. However, lack of toilet paper and paper towels should only be temporary once consumers stop panic buying these items.