The Premium Cigar Association (PCA) says a prolonged dockworkers strike by the International Longshoreman’s Association (ILA) could impact the premium cigar industry. However, not everyone in the cigar industry is ready to panic.

PCA noted that Miami, Tampa, and Fort Lauderdale are among 36 U.S. Eastern and Gulf Coast ports affected by the strike. These three have ports for the inbound shipment of premium cigars into the U.S. With workers striking at these ports, shipments could be sent to ports without striking workers or withheld. Sea-based shipments could also be adjusted to come by air or land routes. PCA has stated that this will ultimately have a ripple effect on the supply chain. PCA also says the effects largely depend on the length of the strike. The strike does not impact West Coast ports, but they are not hubs for premium cigar shipments.

While the PCA has gone on the record with concerns, Cigar Coop spoke to several manufacturers who said they don’t expect any impacts or disruption to business. Manufacturers cited air shipments, UPS Direct, and ports where workers are not on strike as reasons not to be concerned. Cigar Coop was also told existing inventory at warehouses will be able to help distributors continue to service customers.

Conversely, PCA cited an expert who feels the industry should be prepared. Peter Quinter, Chair of U.S. Customs and International Trade Law Group and Gunster law firm, commented: “The overwhelming tonnage of cargo imported into the United States arrives by ocean. The ILA strike affects all union ports along the East and Gulf Coasts. All types of products, such as bananas from Costa Rica and TVs from China, will be affected, including cigars, which are typically imported into the United States by ocean from the Dominican Republic or one of the countries in Central America. Producers and importers of cigars need to urgently plan accordingly.”

“Nearly every consumer or retail goods provider in the United States has a vested interest in seeing this situation resolved quickly. This includes retailers, importers, and manufacturers of premium cigars. Even though your particular shipment may not be affected by the strike, the overall disruption to the system could have secondary and tertiary effects on the U.S. supply chain,” added Joshua Habursky, Executive Director of the Premium Cigar Association.

One option to end the strike is for President Joe Biden to invoke the Taft-Hartley Act. This would require an 80-day “cooling off” period focused on mediation, which Biden has said he has no plans to do to end the strike.

The ILA went on strike at midnight on October 1, 2024. This is the first time the ILA has gone on strike in nearly half a century. The last time was in 1977.