As Supply Chain Director, the potential strike by East and Gulf Coast longshoremen, slated for October 1, poses significant risks to U.S. supply chains and the broader economy. A strike would halt operations at major ports, such as New York, Savannah, and Houston, leading to immediate delays in cargo handling. Retailers preparing for the holiday season could face inventory shortages, while manufacturers reliant on just-in-time deliveries would experience production slowdowns. The agriculture sector may suffer spoilage from delayed exports. Each day of disruption could take up to five days to recover, amplifying the congestion across transportation networks. The ripple effect would be felt globally, straining shipping schedules and impacting both domestic and international trade. While the strike’s timing is critical, especially with a looming presidential election, the likelihood of government intervention, though possible, remains uncertain. This situation requires proactive risk management and contingency planning to mitigate potential disruptions. #Supplychain #Globalsupplychain https://lnkd.in/gG_qJ2Fg https://lnkd.in/gHuRnY2k
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Will the East and Gulf Coast Ports Strike? As East and Gulf Coast ports face a potential strike deadline on October 1, it’s worth noting that West Coast dockworkers recently secured a 32% wage increase over their new contract. In contrast, the International Longshoremen’s Association (ILA) on the East and Gulf Coasts is seeking a 77% increase over six years. With contract talks stalled, the possibility of a strike looms, which could have significant impacts on supply chains. Potential Supply Chain Impacts: Short Strike: A brief strike could lead to temporary disruptions in port operations, causing delays in shipments and creating backlogs. This could affect inventory levels, lead to increased shipping costs, and prompt businesses to reroute cargo to alternative ports, putting additional pressure on other transportation networks. Long Strike: A prolonged strike would have far-reaching consequences. It could severely disrupt supply chains, particularly for industries relying on just-in-time inventory. Importers and exporters may face significant delays, increased costs, and potential stockouts. Retailers, manufacturers, and distributors could experience major interruptions, potentially leading to product shortages and impacting holiday season sales. We'll continue to stay on top of this for you, as any disruption could ripple across the entire supply chain from Maine to Texas. #TransportationTuesday #Supplychain #logistics #Buffalo
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Will the East and Gulf Coast Ports Strike? As East and Gulf Coast ports face a potential strike deadline on October 1, it’s worth noting that West Coast dockworkers recently secured a 32% wage increase over their new contract. In contrast, the International Longshoremen’s Association (ILA) on the East and Gulf Coasts is seeking a 77% increase over six years. With contract talks stalled, the possibility of a strike looms, which could have significant impacts on supply chains. Potential Supply Chain Impacts: Short Strike: A brief strike could lead to temporary disruptions in port operations, causing delays in shipments and creating backlogs. This could affect inventory levels, lead to increased shipping costs, and prompt businesses to reroute cargo to alternative ports, putting additional pressure on other transportation networks. Long Strike: A prolonged strike would have far-reaching consequences. It could severely disrupt supply chains, particularly for industries relying on just-in-time inventory. Importers and exporters may face significant delays, increased costs, and potential stockouts. Retailers, manufacturers, and distributors could experience major interruptions, potentially leading to product shortages and impacting holiday season sales. We'll continue to stay on top of this for you, as any disruption could ripple across the entire supply chain from Maine to Texas. #TransportationTuesday #Supplychain #logistics #Buffalo
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𝙄𝙢𝙥𝙖𝙘𝙩 𝙤𝙛 𝘿𝙤𝙘𝙠𝙬𝙤𝙧𝙠𝙚𝙧𝙨' 𝙎𝙩𝙧𝙞𝙠𝙚 𝙤𝙣 𝙐.𝙎. 𝙀𝙘𝙤𝙣𝙤𝙢𝙮 The dockworkers' strike at key East and Gulf Coast ports could significantly disrupt the U.S. economy. With 45,000 longshoremen halting operations, sectors from transportation to warehousing face immediate challenges, while broader impacts could emerge if the strike prolongs. 𝑬𝒄𝒐𝒏𝒐𝒎𝒊𝒄 𝑰𝒎𝒑𝒍𝒊𝒄𝒂𝒕𝒊𝒐𝒏𝒔: 𝐈𝐦𝐦𝐞𝐝𝐢𝐚𝐭𝐞 𝐄𝐟𝐟𝐞𝐜𝐭𝐬: The transportation and warehousing sectors will feel the earliest impacts. Delays in manufacturing due to disrupted supply chains could affect industries reliant on just-in-time deliveries. 𝐄𝐱𝐭𝐞𝐧𝐝𝐞𝐝 𝐒𝐭𝐫𝐢𝐤𝐞 𝐂𝐨𝐬𝐭𝐬: According to Oxford Economics, a prolonged strike could cost the economy $4.5 billion to $7.5 billion weekly. Recovery could take a month for each week of the strike, exacerbating supply chain delays. 𝑰𝒏𝒅𝒖𝒔𝒕𝒓𝒚𝑺𝒑𝒆𝒄𝒊𝒇𝒊𝒄 𝑹𝒊𝒔𝒌𝒔: 𝐈𝐦𝐩𝐨𝐫𝐭𝐬: Industries dependent on imported goods like coffee and bananas might see shortages and price hikes. 𝐀𝐮𝐭𝐨𝐦𝐨𝐭𝐢𝐯𝐞: The auto industry, sensitive to supply disruptions, could delay receiving essential components. 𝑴𝒊𝒕𝒊𝒈𝒂𝒕𝒊𝒐𝒏 𝑬𝒇𝒇𝒐𝒓𝒕𝒔: Businesses have diversified import routes and built up inventories, similar to strategies used during the COVID-19 pandemic, to cushion short-term impacts. 𝑷𝒐𝒕𝒆𝒏𝒕𝒊𝒂𝒍 𝑰𝒏𝒇𝒍𝒂𝒕𝒊𝒐𝒏𝒂𝒓𝒚 𝑬𝒇𝒇𝒆𝒄𝒕𝒔: Due to robust supply conditions and stocked inventories, short-term strikes may not spur significant inflation. However, an extended disruption could influence inflation if not resolved by late October. 𝑪𝒐𝒏𝒄𝒍𝒖𝒔𝒊𝒐𝒏: While current preparations may mitigate initial disruptions, extended strikes could lead to significant economic and industrial challenges, emphasizing the crucial role of labor negotiations in global supply chain stability. https://lnkd.in/gXs5qGid
How the Dockworkers’ Strike Could Ripple Through the Economy
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Check out Dominique Dwor-Frecaut's latest Quick Take: US Dockers Strike to Have Limited Macro Impact Summary -US dockworkers in ports accounting for 60% of maritime freight have gone on strike. -The impact on growth and inflation is likely to be limited as any deep disruption would likely see the Biden administration intervene. Market Implications -I still expect two more 25bp Federal Funds Rate (FFR) cuts in 2024. Read full article here: https://lnkd.in/erUiJc-9
Quick Take: US Dockers Strike to Have Limited Macro Impact - Macro Hive
macrohive.com
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🚨 Are You Prepared for the US East & Gulf Coast Port Strike? 🚨 With labor talks between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) still unresolved, a potential strike could disrupt operations across 36 U.S. ports as early as October 1. These ports are responsible for handling 𝟒𝟑% 𝐨𝐟 𝐚𝐥𝐥 𝐔.𝐒. 𝐢𝐦𝐩𝐨𝐫𝐭𝐬, including critical locations like Charleston, Houston, and Miami. This could create a domino effect across the global supply chain, causing backlogs, equipment shortages, increased shipping costs, and an economic downturn. 𝗢𝘃𝗲𝗿𝘃𝗶𝗲𝘄 The strike stems from unresolved labor contract negotiations between the ILA and USMX as labor contracts ended in September 2024. Disagreements over labor wages, job protections, and concerns about automation are at the heart of the dispute. The ILA argues that inflation has severely impacted their wages, and they are demanding better compensation to keep up with rising living costs. Union leaders have criticized the current proposals, stating that USMX’s offer does not sufficiently address the economic pressures workers face, and they are firmly against the idea of automation replacing dockworkers. 𝗪𝗵𝗮𝘁’𝘀 𝗮𝘁 𝘀𝘁𝗮𝗸𝗲? The strike can cause massive disruptions at East and Gulf Coast ports, with repercussions across any industries dependent on U.S. shipping routes. A staggering $𝟮𝟬𝟬 𝗯𝗶𝗹𝗹𝗶𝗼𝗻 𝗶𝗻 𝗴𝗼𝗼𝗱𝘀 𝗮𝗻𝗱 𝗽𝗿𝗼𝗱𝘂𝗰𝗲 and over 𝟱𝟬𝟬,𝟬𝟬𝟬 𝗷𝗼𝗯𝘀 could be affected if an agreement is not reached. Meanwhile, companies are already rerouting shipping containers to West Coast ports over concerns about the strike. East and Gulf Coast ports handle around 600,000 TEUs (twenty-foot equivalent units) per week. Every day of the strike could cause 𝟱 𝘁𝗼 𝟭𝟬 𝗱𝗮𝘆𝘀 𝗼𝗳 𝗯𝗮𝗰𝗸𝗹𝗼𝗴, with some experts predicting it could take 𝘂𝗽 𝘁𝗼 𝟳𝟬 𝗱𝗮𝘆𝘀 to return to normal operations. This strike would hit sectors such as agriculture, chilled goods, and large-scale exports hard, leading to 𝘀𝗶𝗴𝗻𝗶𝗳𝗶𝗰𝗮𝗻𝘁 𝘀𝘂𝗽𝗽𝗹𝘆 𝗰𝗵𝗮𝗶𝗻 𝗱𝗶𝘀𝗿𝘂𝗽𝘁𝗶𝗼𝗻𝘀, 𝗲𝗾𝘂𝗶𝗽𝗺𝗲𝗻𝘁 𝘀𝗵𝗼𝗿𝘁𝗮𝗴𝗲𝘀, 𝗮𝗻𝗱 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲𝗱 𝘀𝗵𝗶𝗽𝗽𝗶𝗻𝗴 𝗰𝗼𝘀𝘁𝘀. Even if the strike is halted, this will affect the future state of the market. 𝗛𝗼𝘄 𝘁𝗼 𝗣𝗿𝗲𝗽𝗮𝗿𝗲 Navigating this disruption requires proactive supply chain management. Craft’s Supplier Risk Management platform empowers businesses with real-time visibility into supply chain risks, allowing you to 𝘀𝘁𝗮𝘆 𝗮𝗵𝗲𝗮𝗱 𝗼𝗳 𝘁𝗵𝗲 𝗱𝗶𝘀𝗿𝘂𝗽𝘁𝗶𝗼𝗻 and secure your operations. Contact us to quickly get started: https://lnkd.in/gMScTh8u #PortStrike #SupplyChain
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🚨 Attention Supply Chain Professionals: ILA Strike Update 🚨 As of October 1, 2024, the International Longshoremen's Association (ILA) has initiated a strike, shutting down 36 U.S. ports from New England to Texas. This significant action has temporarily halted billions of dollars in trade. The ILA rejected a nearly 50% wage increase offer from the United States Maritime Alliance (USMX), raising concerns about wage stagnation and automation. Key Impacts on the Supply Chain: 🔴 Imports at Risk: Up to 50% of U.S. imports are affected. ⏳ Backlog Concerns: Each day of the strike may lead to an additional 4-6 days needed to clear backlogs. 🚢 Rail Operations Disruption: Port closures are impacting on-dock rail operations. ⚓ Ships Delayed: Vessels route to the affected ports will remain offshore until operations resume. How SEKO Logistics Can Help: At SEKO Logistics, we understand the challenges posed by these disruptions. Our team is ready to assist you by: 🔍 Inventory Solutions: Analyzing your inventory in transit and identifying critical components to minimize impact. ✈️ Alternative Shipping Options: Providing access to diverse shipping methods, including airfreight and alternative ports, to keep your supply chain moving. 🔄 Order Distribution Strategies: Helping you spread new orders across various shipping modes to mitigate disruption. 📊 Real-Time Updates: Keeping you informed with the latest developments and supporting you through negotiations. Let’s work together to navigate this challenging landscape in the supply chain industry. Reach out to see how SEKO Logistics can support your business during this time. #SupplyChain #Logistics #SEKOLogistics #ILA #PortStrike #Trade
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Globalization is wild. As of early Tuesday, dockworkers from Maine to Texas at key ports initiated a strike over wages and automation, a development that could significantly disrupt global supply chains. If the strike extends beyond a few weeks, it may lead to inflationary pressures and potential shortages of critical goods. The labor contract between approximately 45,000 International Longshoremen's Association members and the ports expired at midnight. Despite reported progress in negotiations on Monday, the strike was initiated, marking the union's first action since 1977. With 36 ports affected, the consequences for businesses reliant on these logistics hubs could be substantial, particularly for those with international operations. To mitigate supply chain and pricing risks, it would be wise to monitor the situation closely and assess potential contingencies.
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The imminent dockworker strike on the U.S. East and Gulf coasts is shaking up global supply chains. With critical sectors like pharmaceuticals and manufacturing at risk, industries are bracing for potential shortages, delays, and increased shipping costs. However, last-minute negotiations are ongoing, and there's still a chance the strike could be averted, keeping ports operational. But if a lengthy strike occurs, its ripple effects could impact trade flows for months, with businesses adapting to the new landscape. #GlobalTrade #SupplyChain #EconomicImpact #Logistics Learn more: https://lnkd.in/eCTUdiBX
A historic strike is underway at U.S. ports — and the impact on global supply chains could be huge
cnbc.com
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How will a port strike affect your operations and supply chain? What are the risk factors sustaining and increasing risk impacts? Read our latest blog on the U.S. dockworker strike for risk and mitigation insights and preparing for future disruptions. The recent U.S. port strike, which began on October 1, 2024, at major East and Gulf Coast ports, has been temporarily resolved after three days of negotiations. The strike, led by the International Longshoremen's Association (ILA), sought a halt to automation and a 77% wage increase. A temporary agreement was reached with a 62% wage hike, with further discussions expected in January 2025. Contact us for detailed risk analytics on indicators contributing and resulting from disruptions. https://lnkd.in/eF3RgrY5 #PortStrike #SupplyChain #RiskManagement #Logistics #Manufacturing #GeoPoliticalRisk #BusinessContinuity #SupplyChainDisruption
U.S Port strike - A Major Disruption Avoided (At Least for Now) - Vertaeon
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The major strike set to begin tonight involves dockworkers at ports along the East and Gulf Coasts of the United States. Here are some key considerations for consumers: ### Supplies and Groceries - **Stock Up**: Many consumers are already starting to stock up on essentials like food, water, and household items¹. This is because the strike could disrupt the supply chain, leading to shortages. - **Availability**: Expect potential shortages of imported goods, including fresh produce, electronics, and other items that rely on port deliveries². ### Fuel - **Fuel Supply**: The strike could also impact fuel supplies, as many fuel imports come through these ports³. This might lead to longer lines at gas stations and potential fuel shortages in some areas. - **Price Increases**: With supply disruptions, fuel prices are likely to rise³. ### Pricing - **General Price Hikes**: The disruption in the supply chain is expected to drive up prices on a wide range of goods¹². Retailers may pass on the increased costs of shipping and handling to consumers. - **Economic Impact**: The strike could cost the economy up to $4.5 billion each day, further exacerbating price pressures³. ### What You Can Do - **Plan Ahead**: If possible, purchase essential items before the strike begins to avoid potential shortages and price hikes. - **Stay Informed**: Keep an eye on news updates to understand how the strike is progressing and how it might affect your area. If you have any specific concerns or need more detailed advice, feel free to ask! Source: Conversation with Copilot, 9/30/2024 https://lnkd.in/eMSKgTDg? fbclid=IwY2xjawFoIPFleHRuA2FlbQIxMAABHbNDmlaI70Hek_Crmqu2cOoH5VFV02GluoEgKYRW17i-Re4E-Dl1sZb1WA_aem_nE1itydp7UV5f0PVfWWSQw
East and Gulf Coast ports are headed for a major strike at midnight
nbcnews.com
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