KNS Industrial Supply’s Post

So the strike is on... Thought leaders are saying that each day of the east coast port strike will result in backlogs taking up to seven days to clear. Combined with Hurricane Helene's impact on key trucking routes and fuel shortages, we can expect supply chain disruptions. What is your firm doing to mitigate the impact? #supplychaindisruptions #usportstrike #hurrincanehelene #trucking

🚨 Strike Looming for U.S. East & Gulf Coast Ports With just one week left before a potential dockworkers’ strike, negotiations are still at a standstill between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance. Union officials representing 45,000 dockworkers are demanding substantial wage increases, while no talks have been set to avoid the strike on October 1. This strike could severely impact the U.S. East and Gulf Coast ports, which handle millions of tons of cargo every day. Some industry leaders believe the threat is being overstated, but retailers and logistics providers are bracing for significant supply chain disruptions if the strike goes forward. If you rely on these critical shipping lanes, now is the time to assess your contingency plans and prepare for potential delays in international trade. #Logistics #PortStrike #SupplyChain #Freight #ShippingIndustry

𝐏𝐨𝐬𝐬𝐢𝐛𝐥𝐞 𝐔.𝐒. 𝐏𝐨𝐫𝐭 𝐒𝐭𝐫𝐢𝐤𝐞 𝐂𝐨𝐮𝐥𝐝 𝐁𝐚𝐜𝐤 𝐔𝐩 𝐆𝐨𝐨𝐝𝐬 𝐟𝐨𝐫 𝐌𝐨𝐧𝐭𝐡𝐬 A potential strike at U.S. seaports on the East Coast and Gulf of Mexico could back up cargo there for weeks or even months, shipping experts said on Wednesday. Retailers like Walmart and other importers have been rushing goods in ahead of the Sept. 30 expiration of the union contract covering some 45,000 dockworkers at three dozen seaports from Texas to Maine. Their goal? To land cargo in the U.S. before Oct. 1, when the International Longshoremen’s Association representing those workers has vowed to strike if a new contract is not in place. Analysts at Sea-Intelligence, a Copenhagen-based shipping advisory firm, estimated that it could take anywhere from four to six days to clear the backlog from a one-day strike. “This means that a (one)-week strike in the beginning of October would not be cleared until mid-November,” Sea-Intelligence CEO Alan Murphy said in a statement. A two-week strike could mean that ports would not return to normal operations until 2025, Murphy said. Those findings echo an advisory from A.P. Moller-Maersk, one of the largest providers of ocean transportation. Maersk said a one-week shutdown could require up to six weeks of recovery time, “with significant backlogs and delays compounding with each passing day.” The early shipping strategy has come with a hefty cost to shippers. The off-contract spot market price to send a 40-foot container to the U.S. East Coast from the Far East topped $10,000 in early July, up from around $2,100 in early April, said Peter Sand, chief analyst at pricing platform Xeneta. “The risk of port strikes was something that had to be dealt with – by taking early action,” Sand said. That window is closing as the deadline for a new deal nears. That’s because shipping diversions due to attacks by Yemen’s Houthis in the Red Sea means it can take 45 days or longer to transport goods to East and Gulf Coast ports from factories in Asia. “Shipping cargoes next week … is really too late – as it may just be sitting on the water” if the ports are hit by widespread strikes, Sand said.

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

The ending of the East Coast port strike in had a significant impact on the trucking industry, as port operations resumed and the backlog of cargo began to clear. During the strike, many truckers faced a period of inactivity or delays due to the reduced flow of goods, particularly at major ports handling a significant portion of U.S. imports and exports. Once the strike ended, the trucking industry experienced a surge in demand as goods that had been stuck at ports began moving again. This created a temporary spike in volumes, especially in markets near the affected ports. However, the backlog meant that many trucking companies had to quickly adjust to manage the influx, leading to increased workloads, driver shortages, and higher operational costs as they raced to transport delayed shipments. The rebalancing period following the strike involved significant coordination between shippers, trucking firms, and warehouses, with some lingering congestion issues expected as companies worked through the accumulated volumes of cargo . In the broader context, the strike and its resolution underscored the fragile nature of the U.S. supply chain and the essential role of trucking in managing disruptions across multiple modes of transport. The trucking industry remains a key player in alleviating supply chain bottlenecks whenever major disruptions like strikes occur.

Awesome news! The U.S. port strike has been averted following a tentative agreement between dockworkers and shipping companies. The strike ended with a major win for the International Longshoremen’s Association (ILA), securing a wage increase of around 62% over six years, with salaries expected to rise to about $63 per hour from the current $39 per hour. The agreement temporarily extends the existing contract until January 2025 to allow more time to address unresolved issues, including concerns over automation at ports, which the union argues could threaten jobs. While work at the port is resuming, the economic impact of the strike, including backlogs of ships and goods, will take some time to resolve. #SupplyChain #CustomerService #ManageTheMessage #DemandPlanning #ProcessImprovement #OrganizationManagement #Port #Forecasting #InventoryManagement

Longshoreman at ports across the US East and Gulf coasts have officially gone on strike as last efforts to come to an agreement on wages and automation failed. We spoke with Sourcing Journal as the strike loomed about why some retailers were prepared for this - and what happens to those who weren’t (article below). #PortStrike #LogisticsStrategy #SupplyChainStrategy

Supply Chain Warfare: Port Strike Called Off? Attendance only available with RSVP: https://lnkd.in/gQv2huDw U.S. dockworkers and the United States Maritime Alliance reached a tentative agreement on wages, ending a strike that had disrupted East and Gulf Coast ports. The deal includes a contract extension through January 15, 2025, giving both sides time to negotiate unresolved issues, particularly port automation. The strike, which involved around 50,000 workers, caused significant disruptions to the U.S. supply chain, delaying billions of dollars in goods and increasing shipping costs. Read more here: https://lnkd.in/g9uiFX8e Join 1TCC®'s upcoming webinar, "Supply Chain Warfare of 2025," to explore how these innovations will impact industries worldwide and and the strategies that may help mitigate business risks. Don't miss the opportunity to collaborate with leading experts such as Yossi Feinberg, James Greenwood, Scott Wine, and Sanjay Bonde. Date: Friday, October 25th Time: 9 - 10 am PT (45 minute session with 15 minute interactive Q&A) *Attendance only available with RSVP: https://lnkd.in/gQv2huDw 1TCC®, delivering capital-efficient supply chains™. Learn more at 1tcc.com #PortStrikeEnds #SupplyChainDisruption #DockworkersDeal #LogisticsNews #TradeAlliance #USSupplyChain #WageAgreement #SupplyChainCrisis #1TCC #TCC #TradeCapitalCorporation #1TCCSolutions #1TCCPlatform #Webinar #SupplyChainWarfare #ScottWine #JamesGreenwood #YossiFeinberg

Looming US Port Strike: Could Disruptions Stretch Into 2025? As the October 1 deadline approaches for dockworker contract negotiations on the US east and Gulf coasts, the shipping industry is bracing for potential disruptions. According to research from Sea-Intelligence, even a one-week strike could take four to six weeks to recover from, with the ripple effects potentially lasting into 2025. This data underscores the significant impact a work stoppage could have on global supply chains. While the @International Longshoremen’s Association (ILA) is pushing for a 76% pay rise, past experiences—like the 13-month negotiation at the West Coast ports last year—suggest that a deal could be reached before the deadline. Lars Jensen, of Vespucci Maritime, highlighted that such a strike could lead to major congestion issues, capacity shortages, and higher freight rates, ultimately costing American consumers. For more detailed insights, read the full article by Sam Chambers on Splash Maritime and Offshore News (splash247.com). Let’s hope for a resolution that keeps our supply chains moving smoothly. #SupplyChain #PortStrike #Logistics #GlobalTrade #MaritimeIndustry https://lnkd.in/e_v5Qz6R