Supermarket supply concerns are arising due to panic buying during the U.S. ports strike.

• Consumers are buying products in bulk due to concerns about shortages as a result of the ongoing strike at U.S. East and Gulf Coast ports.
• Key stakeholders are urging shoppers to remain composed, as several essential items such as toilet paper and bottled water will not be affected.
• Some concerns exist that the warnings are not effective, and certain products may soon disappear from stores.

On the third day of the East and Gulf Coast ports strike, consumer fears of product shortages have caused panic buying among East Coast and Gulf Coast shoppers, who have been purchasing toilet paper and other household items, leaving empty shelves in their wake.

The National Grocers Association, representing over 1,500 independent supermarket members, is urging the public to remain calm. With more than 21,000 independent grocery stores across the US, generating over $250 billion in sales and employing over a million people, the industry is a vital part of the nation's economy.

"Independent grocers are actively collaborating with their wholesalers to secure alternative supply options and efficiently manage their inventory to minimize disruption to their customers. Despite the port strike, products such as toilet paper and bottled water, along with many other items on consumers' shopping lists, are made in the U.S. and are not affected. While some fresh produce items may become unavailable, they will be restocked quickly once the strike ends."

Retailers have been preparing for a potential strike at East and Gulf Coast ports for months, by frontloading shipments of both discretionary and non-discretionary products, according to the National Retail Federation.

The manufacturing, supply, logistics, and shipping industries are collaborating with supply chain partners to guarantee that essential products and services are readily accessible to customers and retailers can continue to meet consumer demand. There is no need for panic buying, and we urge consumers to shop responsibly. If you don't require an item in the next two weeks, kindly leave it for someone who does, the federation stated.

As the former CEO of Walmart, Bill Simon emphasized the severity of panic buying and its potential to cause a ripple effect on domestic products.

"Simon cautioned that panic buying can affect both imported and domestic products, and cause consumers to change their purchasing behavior. The sudden increase in prices, following years of inflation, will have a negative impact on consumers, who are already in a bad mood. Immediate action is necessary to address this issue."

Simon added the U.S. supply chain has been engineered to reduce cost.

"When an external action, such as Covid or a port strike, creates abnormal demand in the form of panic buying, the supply chain doesn't have the ability to react to that because we had to eliminate much of the safety stock that cushions disruptions."

Neither Walmart nor Target promptly disclosed any panic buying trends observed in their outlets.

'We are worried.'

Gristedes super chain owner John Catsimatidis stated that panic buying is ongoing and shows no signs of slowing down.

"Catsimatidis stated that toilet tissue is the most popular item purchased, followed by paper towels. He expressed concern about the produce department and is seeking alternatives for transporting produce."

Nearly 2,000 containers filled with fresh produce are currently stranded on vessels anchored near ports that have been shut down due to a strike, according to Vizion data.

Catsimatidis, who backed Donald Trump in 2020 and is supporting the Republican candidate again, stated that these issues could have been avoided if the Biden administration had taken a different approach.

"The president has not invoked Taft-Hartley to extend negotiations, and the parties are not communicating. This is causing a delay in vital trade and putting additional stress on supply chains. It is important to get the parties back to the negotiating table."

Stew Leonard, Jr., CEO of Stew Leonard's grocery stores, informed CNBC that they anticipated the strike and stocked up on what they could, ensuring they will be sufficient through Thanksgiving. However, customers seeking fresh produce and fish may need to adjust their shopping habits.

"Leonard stated that customers who might enjoy sweet Brazilian shrimp may need to purchase Gulf shrimp. Additionally, pineapples, bananas, and mangos are exported to the East Coast, along with other vegetables such as asparagus. Bananas are the top fruit export in our produce department. We will obtain them, but it may take a longer transit from China, or we can fly and truck them in. This will increase prices due to the cost of logistics. As a result, parents may choose to put an apple in their child's lunch box instead of bananas."

Leonard said the cost of bananas could double over the short term.