Columbia Montour Chamber of Commerce’s Post

The 2024 U.S. port strike, which began on October 1, affects key ports on the East and Gulf coasts, representing over half of the nation's port capacity. It could cause delays in the shipment of perishable goods, chemicals, and seasonal items, potentially leading to higher prices for consumers. Economic losses are projected at $3.8–$4.5 billion per day, with disruptions to supply chains and possible temporary job losses for thousands of workers. While companies have diverted some shipments to West Coast ports, prolonged strikes could exacerbate inflation and harm the broader economy. Hoping that both parties will reach an agreement swiftly to prevent further economic fallou

Potential Port Strike may be inevitable at this point. The strike will include all ports from Maine to Texas and impact 600,000 jobs on the east and gulf coasts. (Roughly 60% of the US port traffic) If everything shifts to the west coast freight from Asia could hit pocketbooks north of $20K per container. NY and NJ ports alone represent $240B annually Should the president invoke the Taft-Hartley Act to get through the fall peak season? It feels like he should, but it is election time, and that is something that will be accounted for. The volume we see during the 4th quarter, anything over a two week strike will have an impact into 2025. What are your risk assessments?

🚢 US East Coast Supply Chain Faces Disruption Amid Strike Threat 📉 The US East Coast is facing a potential strike that could severely impact supply chains. The looming strike threatens to exacerbate existing challenges in the logistics and container shipping sectors. Stakeholders are concerned about delays and increased costs if the strike proceeds. This situation highlights the fragile state of global supply chains. 🔗 https://lnkd.in/d3BwzSrz #Operations #NorthAmerica #SupplyChain #Strike #Logistics

The massive U.S. port strike has begun.. The strike is the first at these ports since 1977, when trade accounted for just 16% of the U.S. economy, compared to 27% in 2024, the Washington Post reported. ILA President Harold Daggett was among the workers who picketed at the time and recently called it a “tough strike.”Ports and facilities handling approximately 51% of the nation’s overall port capacity are likely to be affected by the potential walkouts, according to the Mitre Corporation, and impact almost every industry, delaying everything from shipments of foreign fruit to supplies for automakers and pharmaceutical companies. The potential damage of such a strike is expected to cost somewhere between $1 billion and $5 billion per day, according to analysis from shipping container marketplace Container xChange and J.P. Morgan. Oxford Economics has said a prolonged strike could impact up to 100,000 jobs and reduce U.S. economic activity by between $4.5 billion and $7.5 billion for every week it persists. Source: The Washington Post, Quartz

Impending ILA Strike: Critical Impacts on Supply Chains With the International Longshoremen's Association (ILA) strike potentially set for October 1st, 2024, supply chains across the U.S. and beyond face severe disruptions. Here's a concise overview of the potential impact and key considerations for supply chain leaders. 1. Immediate Port Shutdowns If the ILA strikes, operations at major East and Gulf Coast ports from Maine to Texas would cease, affecting nearly half of U.S. ocean trade. This would halt the flow of critical imports and exports, leading to a cascade of delays across industries reliant on these ports. 2. Severe Backlogs and Congestion Each day of shutdown could result in a backlog that takes 5-6 days to clear, creating logjams not only at ports but also at rail terminals and warehouses. Cargo rerouted to West Coast or Canadian ports could overwhelm already strained systems, causing further delays. 3. Key Industry Disruptions Industries like automotive, retail, and technology—especially those reliant on just-in-time supply chains—would be most affected. Automotive parts, for example, heavily depend on East Coast ports for shipments from Europe. 4. Rising Costs Ocean freight, warehousing, and airfreight rates could spike as companies seek alternative routes for urgent shipments. Additionally, supply shortages at export hubs, particularly in Asia, may further exacerbate the issue. 5. Extended Economic Impact Even a short strike could have ripple effects lasting weeks, potentially leading to product shortages and delayed deliveries during the crucial holiday season. For supply chain leaders, proactive contingency planning is critical. Consider alternative ports, adjust transportation methods, and build in additional lead time to mitigate the strike’s impact on your operations. https://lnkd.in/g_xC6MJU #SupplyChain #Logistics #SupplyChainDisruption #ILAStrike #SupplyChainPlanning

Massive port strike begins across America’s East Coast, threatening shortages and rising prices The International Longshoremen’s Association (ILA) has initiated a strike against the East and Gulf Coast ports, impacting the flow of goods from Maine to Texas. This includes bananas, European beer, wine, liquor, furniture, clothing, household goods, European autos, and parts required for US factories. The strike may also affect US exports passing through these ports, potentially impacting American companies. The union’s demands significantly differ from the contract offer from the United States Maritime Alliance (USMX). ILA President Harold Daggett expressed concerns about the strike's potential impact on the global economy. The strike could lead to shortages of consumer and industrial goods, potentially resulting in price increases and posing a setback to the recovering economy. The affected ports include the Port of New York and New Jersey, as well as Port Wilmington in Delaware. The US Department of Agriculture and the US Department of Transportation are preparing to mitigate potential disruptions in the supply chain caused by the strike. 

🚢⚓️ The Impact of US Port Strikes: What’s at Stake? ⚓️🚢 The potential strike at U.S. ports could have major consequences for global trade and the economy. With over 30% of U.S. imports passing through its ports, a disruption could lead to delays, shortages, and higher costs for goods worldwide. Industries from electronics to food could be hit hard. But, not all agree on the severity. Some argue that companies are more prepared after recent supply chain challenges. What do you think—are we ready for another disruption or could this shake things up? 🤔🌍 -------------- Below is brief information about the article on CBS. The U.S. is experiencing its first East Coast port strike since 1977. Here's what to know. Thousands of dockworkers at every major East and Gulf Coast port are now striking, closing trade gateways that handle about half of all goods shipped in containers in and out of the U.S. "A port strike could cost the U.S. economy billions of dollars a day, hurting American businesses, workers and consumers across the country," Business Roundtable CEO Joshua Bolten said in a statement this weekend. By Kate Gibson Edited By Aimee Picchi, Alain Sherter https://lnkd.in/eWB6q8E2 Updated on: October 2, 2024 / 11:32 AM EDT / CBS News #GlobalTrade #USPorts #SupplyChain #Economy #Logistics #ShippingNews #PortStrike #ImportExport #Commodities

📌 US port strike is over. Here’s what happens next t took just three days for the potential crisis at the United States’ East and Gulf Coast ports to be averted, with minimal impact on the country’s economy. The strike, led by the International Longshoremen’s Association (ILA), which represents 50,000 workers, came to a quick end as both sides reached an agreement on the primary issue—wage increases. The work stoppage, which began early Tuesday, threatened to disrupt supply chains, risk shortages of consumer goods, and halt essential exports. However, the swift resolution limited the damage. Shippers had anticipated the strike and moved goods through the ports before the Tuesday deadline, mitigating some of the disruption. Despite the brief halt, the ports were poised to return to normal quickly. By Thursday, the United States Maritime Alliance (USMX) increased its wage offer, and the strike was suspended, with the existing contract extended until January 15 while the final details are negotiated. Although the ports are open, it will take time for operations to fully recover. Industry experts estimate that it could take three to five days to make up for each day the ports were closed. For example, the Port of New York and New Jersey, the largest affected port, along with the Port of Virginia, delayed reopening to ensure containers are properly positioned before trucks are allowed entry. While such disruptions are rare, they aren’t unprecedented. Ports have faced closures due to extreme weather events, such as Hurricane Helene, which temporarily shut down several Southeast ports just before the strike. Despite initial concerns, there was minimal impact on emergency relief supplies for hurricane recovery efforts. The financial toll of the strike was significant. The Port Authority of New York and New Jersey reported daily losses of $250-$300 million, totaling approximately $1 billion over the four-day work stoppage. On Friday morning, 24 ships were waiting to unload, including container ships carrying 35,000 import containers. Although the immediate strike is over, there is still the possibility of future disruptions. The final contract, once completed, must be ratified by ILA members. Read the full article 📌 https://lnkd.in/gvxeFk9Q #shipspry #airfreight #expeditedshipping #logistics #AirCargo

🚨 Port Strike Delays Shipments Nationwide 🚨 Due to the ongoing U.S. port strike, supported by the White House, shipments of goods from food to cars are being heavily impacted across dozens of ports from Maine to Texas. As of today, more than 38 container vessels are backed up, significantly affecting logistics and delivery schedules. The strike, led by the International Longshoremen’s Association (ILA), started after negotiations broke down over wage increases and port automation. This disruption could cost the U.S. economy billions of dollars a day. President Biden is urging employers to offer a “strong and fair” contract and monitoring for potential price gouging during this period. While backup plans are in place to minimize the impact, delays are expected. We will continue to monitor the situation and provide updates. Source: Reuters (https://lnkd.in/drZ5rgf2) #PortStrike #LogisticsDelays #SupplyChain 

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