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CNN Live At Daybreak
Shutdown of Ports Could Hurt U.S. Economy Hard
Aired October 01, 2002 - 06:33 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Tons of cargo still sitting unloaded at ports along the West Coast, and it's hurting the U.S. economy big time.
Dock workers at all 29 major west port coasts -- West Coast ports, rather, were ordered off their jobs indefinitely Sunday, in a labor dispute with shipping lines. Both sides due to meet with federal mediators today.
CNN's Rusty Dornin has more on the shutdown's impact on the United States' economy.
(BEGIN VIDEOTAPE)
RUSTY DORNIN, CNN CORRESPONDENT (voice-over): You are looking at what could soon be a nightmare for countless businesses here and around the world. These huge cargo containers are going nowhere, stuck on ships, with no place to unload.
Even here in downtown Berkeley, California, UC dean of public policy, Michael Nacht, says businesses have reason to worry.
(on camera): How about a store like this? You know, here, you've got a shoe store.
MICHAEL NACHT, UC BERKELEY: Yes, I mean, there are tons of sneakers and shoes, women's to men's footwear is manufactured abroad -- a very high amount. And it's mostly in the area that's being impacted.
DORNIN (voice-over): Here at the Port of Oakland, the big five imports are shoes, clothes, furniture, toys and auto parts.
To the south, this auto manufacturing firm usually gets 30 to 40 of those huge containers of engines and parts every day. The company has an inventory for five days. If a shutdown continues, this assembly line could grind to a halt.
But that's only for imports. What about exports? Sitting on the docks here is produce -- fruits and vegetables that will rot if they don't get shipped to Asia in the next few days, costing the farmers millions.
People like you and me may not see a hike at the cash register right away. Analysts say retailers can't afford to turn off consumers in this economy.
But what if it continues?
(on camera): Retailers may absorb some of the costs. But if they are forced to go to air freight or the East Coast ports, then what happens?
NACHT: Then they have to -- you know, the major new transportation costs are incurred that they didn't budget for. And they're going to have to pass a chunk of those costs, maybe all of those costs, on to the consumer.
DORNIN (voice-over): Of course, the actual impact on consumers depends on how long the shutdown lasts. But any impact on consumers certainly won't be welcome in this already fragile economy.
Rusty Dornin, CNN, Oakland, California.
(END VIDEOTAPE)
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
Aired October 1, 2002 - 06:33 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Tons of cargo still sitting unloaded at ports along the West Coast, and it's hurting the U.S. economy big time.
Dock workers at all 29 major west port coasts -- West Coast ports, rather, were ordered off their jobs indefinitely Sunday, in a labor dispute with shipping lines. Both sides due to meet with federal mediators today.
CNN's Rusty Dornin has more on the shutdown's impact on the United States' economy.
(BEGIN VIDEOTAPE)
RUSTY DORNIN, CNN CORRESPONDENT (voice-over): You are looking at what could soon be a nightmare for countless businesses here and around the world. These huge cargo containers are going nowhere, stuck on ships, with no place to unload.
Even here in downtown Berkeley, California, UC dean of public policy, Michael Nacht, says businesses have reason to worry.
(on camera): How about a store like this? You know, here, you've got a shoe store.
MICHAEL NACHT, UC BERKELEY: Yes, I mean, there are tons of sneakers and shoes, women's to men's footwear is manufactured abroad -- a very high amount. And it's mostly in the area that's being impacted.
DORNIN (voice-over): Here at the Port of Oakland, the big five imports are shoes, clothes, furniture, toys and auto parts.
To the south, this auto manufacturing firm usually gets 30 to 40 of those huge containers of engines and parts every day. The company has an inventory for five days. If a shutdown continues, this assembly line could grind to a halt.
But that's only for imports. What about exports? Sitting on the docks here is produce -- fruits and vegetables that will rot if they don't get shipped to Asia in the next few days, costing the farmers millions.
People like you and me may not see a hike at the cash register right away. Analysts say retailers can't afford to turn off consumers in this economy.
But what if it continues?
(on camera): Retailers may absorb some of the costs. But if they are forced to go to air freight or the East Coast ports, then what happens?
NACHT: Then they have to -- you know, the major new transportation costs are incurred that they didn't budget for. And they're going to have to pass a chunk of those costs, maybe all of those costs, on to the consumer.
DORNIN (voice-over): Of course, the actual impact on consumers depends on how long the shutdown lasts. But any impact on consumers certainly won't be welcome in this already fragile economy.
Rusty Dornin, CNN, Oakland, California.
(END VIDEOTAPE)
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
