How to Navigate Potential U.S. East Coast & Gulf Port Strike
As we approach October 1, a potential strike by U.S. East Coast and Gulf port dockworkers may disrupt logistics across the supply chain, leading to delays and increased costs. CMA CGM has already announced a surcharge implementation, with Local Port Charges increasing up to $3,000 per 40-foot container effective October 11. Other carriers are likely to follow suit.
According to Sea-Intelligence, a one-day ILA work stoppage would require six days for recovery, while a one-week stoppage in October—coinciding with the holiday rush—could create bottlenecks until mid-November. Furthermore, if the ILA strikes, the ILWU is expected to take solidarity action, potentially causing slowdowns at U.S. West Coast ports. Extended stoppages may lead to severe disruptions, overwhelming ports with rerouted shipments, resulting in container pile-ups, chassis shortages, skyrocketing trucking rates, General Rate Increases, and additional detention and demurrage costs.
To help mitigate these disruptions, we recommend the following logistical solutions:
1. Utilize Alternative Ports: Consider rerouting shipments through West Coast, Canadian, or Mexican ports to avoid delays.
2. Air Freight Options: For urgent shipments, air freight offers a faster alternative to avoid sea freight delays.
3. Increase Inventory: Boost stock levels in advance to maintain business continuity if shipments are delayed.
4. Adjust Shipping Schedules: Ship earlier to avoid disruptions or delay non-urgent shipments until the situation stabilizes.
5. Work with Multiple Carriers: Diversify the utilization of different shipping lines to reduce dependency on a single carrier affected by the strike.
6. Warehousing Solutions: Strategic warehousing near key locations can help manage inventory while awaiting final delivery.
7. Customs Clearance Support: Streamline customs processes to minimize clearance delays at destination ports.
Additionally, preparing your cash flow for potential price surges is crucial during this time of uncertainty.
We are closely monitoring the situation and will keep you updated. If you need assistance adjusting your supply chain strategy, don’t hesitate to reach out.
iTrack HK
According to Sea-Intelligence, a one-day ILA work stoppage would require six days for recovery, while a one-week stoppage in October—coinciding with the holiday rush—could create bottlenecks until mid-November. Furthermore, if the ILA strikes, the ILWU is expected to take solidarity action, potentially causing slowdowns at U.S. West Coast ports. Extended stoppages may lead to severe disruptions, overwhelming ports with rerouted shipments, resulting in container pile-ups, chassis shortages, skyrocketing trucking rates, General Rate Increases, and additional detention and demurrage costs.
To help mitigate these disruptions, we recommend the following logistical solutions:
1. Utilize Alternative Ports: Consider rerouting shipments through West Coast, Canadian, or Mexican ports to avoid delays.
2. Air Freight Options: For urgent shipments, air freight offers a faster alternative to avoid sea freight delays.
3. Increase Inventory: Boost stock levels in advance to maintain business continuity if shipments are delayed.
4. Adjust Shipping Schedules: Ship earlier to avoid disruptions or delay non-urgent shipments until the situation stabilizes.
5. Work with Multiple Carriers: Diversify the utilization of different shipping lines to reduce dependency on a single carrier affected by the strike.
6. Warehousing Solutions: Strategic warehousing near key locations can help manage inventory while awaiting final delivery.
7. Customs Clearance Support: Streamline customs processes to minimize clearance delays at destination ports.
Additionally, preparing your cash flow for potential price surges is crucial during this time of uncertainty.
We are closely monitoring the situation and will keep you updated. If you need assistance adjusting your supply chain strategy, don’t hesitate to reach out.