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🚢 Turbulence at U.S. Ports: A Looming Strike Threat Port operators and shipping lines are in a race against time as a potential strike by 45,000 unionized dockworkers could disrupt over half of U.S. seaports. With the current contract expiring on September 30, employers filed a complaint urging the National Labor Relations Board to force the International Longshoremen's Association (ILA) to the bargaining table. However, the ILA demands a 77% wage increase over six years, calling the complaint a "publicity stunt". If the strike happens, it would severely affect a broad range of sectors. From food products like cheese and olive oil to consumer goods such as T-shirts, furniture, and auto parts, the shutdown would disrupt the steady flow of goods into the country. Importers and retailers are already racing to clear their cargo ahead of the deadline, with many ports extending operating hours to mitigate potential losses. East Coast and Gulf Coast ports, where the ILA operates, are vital for the U.S. economy, especially as these ports have grown more significant following West Coast disruptions in recent years. If negotiations remain at a standstill, the strike could lead to massive delays in supply chains, increased costs for consumers, and further inflationary pressures. For any questions related to the topic, Henry Alonzo, CSM will be there to help you. #lifescience #logistics #update

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

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

With the possibility of a strike at East and Gulf Coast ports growing more imminent, we are closely watching how this situation may unfold. The International Longshoremen’s Association (ILA) has expressed unanimous support for a strike if no agreement is reached by the Sept. 30 deadline. With ports along the East and Gulf Coasts responsible for 43% of all U.S. imports, the impact of a work stoppage would be massive, particularly as we approach the holiday season—a crucial time for retailers, manufacturers and agriculture.   We are deeply concerned about the disruption this would cause to supply chains nationwide. A strike could result in severe delays, economic losses and increased costs across every industry that relies on these ports. Our members—third-party logistics providers—are already stepping up to find alternative solutions, from increasing trucking capacity to rerouting shipments, but the challenges are real. We urge all parties involved to return to the bargaining table and work toward a resolution that keeps goods flowing. At TIA, we are committed to supporting our members and ensuring that the supply chain remains resilient in the face of these potential disruptions. https://lnkd.in/epv-bW-E #SupplyChain #Logistics #TIA #PortStrike 

The collective bargaining agreement between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) expires in less than a week. The sticking points primarily involve increased wages and automation. No bargaining sessions are scheduled prior to the September 30 contract expiration, and the ILA is on record as stating it will not extend that deadline. A strike seems nearly unavoidable. A strike would shut down the East coast and Gulf coast ports entirely. Those facilities include over half of the busiest ports in the country, with nearly 13 million containers passing through annually. What is more, the effects of a strike would mushroom well-beyond the actual strike, as shipping delays, container ship congestion, port congestion on West coast ports, and stranded freight would be prevalent. Without question, even a reasonably short strike would devastate the container supply chain for months as the potential timing coincides with elevated holiday shipping demand. Several trade groups have therefore called on the White House to exert its Taft-Hartley Act power to force workers to remain on the job for an 80-day cooling off and negotiation period, but the White House has signaled it does not intend to do so. Anticipating a strike, logistics providers should consider several mitigation measures. Preparing for congestion on West coast ports, taking advantage of intermodal ground transportation where possible, looking for alternatives including when necessary for urgent delivery, possibly air transport, delaying shipping from East and Gulf coast ports until after the strike, and budgeting for increased freight and container fees could all be beneficial. Similarly, watching for increased port hours in the lead-up to September 30 may be helpful. We will continue to monitor the interaction between the ILA and USMX. As deadlines loom, pressure to negotiate mounts. Although a strike seems unavoidable at present, increased pressure could conceivably lead to movement. For more information, feel free to contact Greg Feary, James Hanson, A. Jack Finklea, Don Vogel, Prasad Sharma, or Chris McNatt. https://lnkd.in/gMUywa42

Port strikes are a big disrupter for many companies, whether directly impacted or indirectly as resources get rerouted and become harder for you to get what you need on time. It also provides opportunities, especially those motor carriers in the spot market. Regardless of which side you may be on, contingency plans for these scenarios should already be ramping up.

The looming strike at the Port of Baltimore and other major East and Gulf Coast ports is raising significant concerns about supply chain disruptions and increased freight costs. If the strike proceeds, it could halt operations at key ports from Maine to Texas, including major hubs such as New York/New Jersey, Charleston, Savannah, and Houston. These ports handle a large portion of U.S. containerized imports—up to 68%—and any work stoppage would significantly delay the movement of goods. Freight costs have already been under pressure due to increased demand for port capacity, and this strike could exacerbate the issue. Even a short strike could lead to weeks of backlog at warehouses and distribution hubs, driving up transportation costs. A longer strike would likely result in global freight rate increases, which have been stagnant in recent months but are expected to rise sharply with any prolonged disruption. Alternative routes, such as Canadian and West Coast ports, are being considered, but they may not fully mitigate the impact.

Some insight regarding the potential ILA strike that could start as early as midnight…supply chain disruption and increased cost on freight are very real consequences that could impact all of us. #longshoremen #ila #strike #ilastrike #ports #supplychain #imports #freight #freightcost #supplychaindisruption

The U.S. Port Strike *** I wanted to share a quick update about the recent strike at U.S. ports, which had a huge impact on the logistics and shipping industry. Around 45,000 dockworkers from the East and Gulf Coasts went on strike starting October 1st. The reason? A dispute over wages and concerns about automation potentially taking over jobs. The workers, represented by the International Longshoremen's Association (ILA), demanded better pay and job security as ports continue to implement more automated systems. This strike put a serious strain on supply chains, with experts predicting billions of dollars in potential losses due to delays in shipping, especially for perishable goods like fruits and vegetables. Thankfully, after three days of halted operations, the ILA and the U.S. Maritime Alliance (USMX) reached a tentative agreement on October 3rd. This deal includes a *62% wage increase* over the next six years—bringing the average wage up to $63 per hour from $39! While this ends the strike for now, both sides will continue negotiations on other issues until January 2025. This is a huge moment for the workers and the industry, highlighting the importance of fair wages and job security in critical sectors like logistics. President Biden even commented on the deal, calling it a win for collective bargaining and the economy. What are your thoughts on this? #USStrike #Logistics #SupplyChain #Dockworkers #CollectiveBargaining #LaborRights

If your supply chain requires shipping anything through the East Coast or Gulf Coast, you must pay close attention to this strike. The two sides have not held an official negotiation since June. Sec. of Transportation Buttigieg and Labor Sec. Su met with the terminal operators on Friday to try and restart talks with no movement. The longest ILA strike was 44 days, this one could go longer. With that in mind, the next options to ship into the United States are Montreal (on strike until Thursday) or Halifax and move over the border via rail or truck. With either option, the cost and schedule impacts are going to be significant. Freight routes were already strained with few empty containers, and were booking four weeks in advance. The lead time is already increasing, especially through the Canadian ports. To mitigate these challenges, it’s crucial to proactively manage your supply chain and plan equipment shipments well in advance. Identifying alternative routes, adjusting schedules, and coordinating closely with logistics partners can help reduce the risk of delays and unmitigated cost increases. By taking a hands-on approach, businesses can stay ahead of potential bottlenecks and maintain project timelines as efficiently as possible despite the current uncertainties in the supply chain landscape. https://lnkd.in/g3veemSz