Straight Forward Consulting’s Post

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

🚨 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

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

🚨 U.S. Port Strike: What It Means for Your Supply Chain 🚨 What’s Happening? Union dockworkers have begun striking after negotiations with shipping companies broke down. This strike is expected to affect the movement of goods through key ports, causing delays across various industries. A strike involving longshore workers at 36 major ports along the East Coast and Gulf Coast has begun, affecting critical shipping hubs from Maine to Texas. This strike, led by the International Longshoremen’s Association (ILA), comes after failed negotiations with the United States Maritime Alliance (USMX) over wage increases and working conditions. This marks the first major strike at these ports since 1977. Potential Impact: Shipping Delays: Every 24-hour stoppage could result in backlogs taking up to seven days to clear. Price Increases: Shortages of essential goods, including food and industrial parts, may drive up prices as businesses scramble for alternative supply routes. #PortStrike #SupplyChainDisruptions #EastCoastPorts #GulfCoastPorts #KNSIndustrialSupply

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

🚢 Potential Strike at US East and Gulf Ports: What You Need to Know 🚢 A looming dockworkers’ strike at 36 ports from Maine to Texas could significantly disrupt US shipping traffic, affecting 60% of the nation’s trade. If no contract deal is reached by next week, 45,000 members of the International Longshoremen’s Association (ILA) may walk out, marking their first strike in nearly 50 years. This could cost the US economy up to $7.5 billion per week. Impact on Major Ports: The strike could close five of the ten busiest ports in North America, including New York and Charleston. Economic Consequences: Over 50% of US containerized cargo imports and 15% of the global container fleet could be affected. Wage Demands: The ILA is pushing for a 77% wage hike over six years, significantly higher than the 32% raise West Coast dockworkers received last year. Holiday Season Pressure: With $34 billion worth of goods en route to affected ports, shippers are racing to deliver before a potential work stoppage disrupts holiday shopping inventories. Cargo Diversions: Carriers are already diverting shipments to West Coast ports, anticipating delays of 4 to 6 weeks. While some non-port activities like inland rail ramps may continue, port closures will significantly reduce rail services. The situation remains fluid, with ongoing discussions on managing operations if a strike occurs. Stay tuned for updates as this situation develops. 📦🚛 Source: JOC, Freight Waves, Shipping Watch, USMX, Sherwood News #SupplyChain #Logistics #Shipping #PortStrike #TradeDisruption #Economy #HolidaySeason #Freight

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 

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

Is your company at risk of being impacted by the potential US East and Gulf Ports Strike? 🚢 Check out below details from my colleague Josh Harris

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