Panic at the Costco! People stocking up on water, toilet paper amid port strike

CEDAR PARK, Texas (KXAN) -- If the packed parking lot outside the Costco in Cedar Park on Thursday morning is any indication, people in Central Texas are not taking any chances with the latest port strike.

"People are already panic buying," Amy Garbade said. "Toilet paper is almost out, along with paper towels. They have a ton of water."

Pallets of water and toilet paper, indeed, are a hot commodity. At one point this week, it was problematic enough that a sign still up read they were out for the day of both items.

"It totally feels like a COVID situation," Garbade said. "I just needed water. I was out. I needed napkins, so I had to be here."

The International Longshoreman's Association strike began this week after workers walked off demanding better bay and a new contract. The current contract expired on Monday.

"That closes every port from Brownsville, Texas, to the state of Maine," explained Margaret Kidd, Associate Professor of Supply Chain and Logistics for the University of Houston.

While experts said everyone is OK in the short-term, they said this so-called "panic buying" actually just creates a domino effect.

"We are going to create artificial shortages that are not going to be doing anybody any good," Edward Anderson, a UT professor of business, told KXAN.

The last time a port strike impacted America was back in 1977. The concern this go-around is how long it could potentially last.

"A strike of any prolonged nature will do severe damage to the economy," Kidd explained.

That could have far-reaching consequences that affect much more than what's at the grocery store or a Costco.

"If we go two weeks into the strike, some of the cargo will be moving by the first of next year," Kidd said.

When it comes to that ever precious toilet paper and water, Anderson said consumers are focusing on the wrong things to hoard.

"Those things are made in the U.S.," he said. "There is no reason for people to worry about those.

Judging by the long lines at the Cedar Park Costco checkout, some people are not taking any chances.

Both professors told KXAN they believe the White House will step in over the next week to get things moving again. However, if an agreement is not made, things like lumber, steel, microchips and generic prescription drugs will be some of the first things impacted. Delays for those items could begin if the strike goes past the two-week mark.