Finding solutions for navigating a port strike is becoming increasingly essential, with a coastwide ILA protest nearly a week away. The International Longshoremen’s Association (ILA) plans to strike on October 1st when their six-year contract ends. Talks with the United States Maritime Association (USMX) about new contracts have stopped, and the deadline is quickly approaching. Supply chains that import into East and Gulf Coast ports may soon feel disruptions from port shutdowns. Over 43% of all imports into the U.S. go through these ports, resulting in billions in revenue. This article will explain some ways to mitigate the effects of a potential strike.
What is the Impact of a Coastwide Strike?
The ILA is a union of over 65,000 members handling cargo at nearly 40 East and Gulf Coast ports. With the size of the ILA, a protest can bring more than half of U.S. port operations into pause. A supply chain analyst notes that ports may not clear a two-week strike until 2025. Key industries that the strike will significantly impact include manufacturing, agriculture, retail, energy, and petrochemicals. In particular, a complete shutdown of ports will lead to delays for import and export shipments. Once a carrier enters a port, it could stay days at the dock, not being unloaded by workers. Shippers have already begun rerouting their cargo to West Coast ports to avoid potential slowdowns.
Rerouting to West Coast ports may also lead to longer transport shipper transport times and higher costs. Another impact of an international strike is that fees for international shipping can drastically increase. These expenses include capacity costs, per diem, storage, demurrage chassis, pre-pull, etc. Shippers, carriers, and clients feel the effects of a port strike. For example, clients can view carriers negatively if they have to increase costs and reroute shipments. With the amount of revenue the U.S. generates from exports and imports, a strike could cause extensive economic damage.
The Best Solutions for Navigating A Port Strike
Due to the substantial effect of a potential strike, finding solutions for protecting your cargo is critical. This can mean delaying the shipment until the protest is over. Freight leaving from a port of origin after September 20th will likely be affected by the strike. For goods that are already in transit, redirecting to West Coast ports may be the best solution. It is crucial to understand that West Coast ports are already at high volumes due to the number of shippers rerouting, so you may experience higher transit times. Using other methods of conveyance, like shipping by land or air, can be beneficial for crucial shipments.
With the strike approaching quickly, shippers must be current by constantly checking the news. Another way to protect your cargo is by shipping with the assistance of a freight forwarder. Forwarders ensure the transport of your goods in the most effective, safest, and cost-effective way. They educate the shipper on what to expect and find the best action for your cargo’s transport. A1 Worldwide Logistics has freight forwarders, along with an extensive number of solutions for navigating a potential strike. Speak to us at 305-425-9513 or info@a1wwl.com for assistance importing or exporting in and out of the U.S.
