Potential USA Port Strikes
27th September, 2024
Dear Customers,
There is an expectation that port strikes will commence 1st October in many East Coast USA ports.
The ILA union which represents 45,000 workers at major USA East Coast and Gulf Coast ports has for several months been seeking new workplace agreements for its members.
The ongoing negotiations with USMX, which represents employers in the Longshore industry has not progressed in line with the ILA demands.
Discussions hit a bump in June when ILA found out that some ports had implemented automated technology.
The Latest
The ILA advises that they will strike on October 1st if they don’t get the contract that they believe they deserve.
What happens next
If the strikes do commence:
- Bottlenecks will occur in key USA ports.
- Vessels will be diverted to alternative ports.
- Other USA ports with alternative unions may join in support of the ILA. This will impact the diversion of vessels.
- An extended work stoppage may overwhelm the supply chain
- Air freight capacity will be squeezed as the supply of goods seeks other routes.
- Air freight rates will increase as a result of the increased volumes.
What to do
We can draw on many of the lessons that we learnt during the pandemic:
- Have regular and much earlier communications with your USA suppliers.
- Understand fully your USA suppliers current stock levels.
- Understand your USA suppliers lead times.
- Review your current inventory levels.
- Place orders earlier than current practices.
- Alert SCC of all orders at the same time that they are placed with your suppliers.
- Work with the SCC team to determine best course of action for each booking.
- LCL cargo for example can be trucked or railed to west coast ports for consolidation.
- Consider air freight to ensure that you maintain required stock levels.
- The SCC team can provide a full cost analysis for you, comparing air v’s sea on rates and respective transit times.
If you require any further details, please reach out to us in sales@sccargo.com.au
