**Time Running Out to Avoid Devastating Port Strike**
With a potential strike looming at ports along the East Coast and Gulf Coast, logistics executives are racing against the clock to move as much trade as possible before the shutdown. According to data from ImportGenius, over 54,000 twenty-foot equivalent units (TEUs) arrived on Friday at the 14 affected ports, with a value of approximately $2.7 billion.
The scramble to clear containers off the dock is intense, with importers and logistics companies working together to avoid potential delays. “Importers should try to clear as many of their containers off open terminals where possible to avoid possible delays in acquiring their inventory,” said Alan Baer, CEO of OL USA.
The stakes are high, with a strike potentially blocking the flow of hundreds of thousands of containers into the U.S. and impacting the entire economy. “These ports are a major gateway into the U.S. for refrigerated produce. Time isn’t on the side of importers,” said Michael Kanko, CEO of ImportGenius.
The International Longshoremen’s Association (ILA) has announced that its 85,000 members will go on strike at 12:01 am on Tuesday, October 1, unless a deal is reached with the US Maritime Alliance (USMX). The ILA has been seeking better wages and benefits, as well as limits on automation at ports.
The impact of a strike would be felt far beyond the ports themselves. A prolonged shutdown could lead to increased freight rates, delayed shipments, and higher prices for consumers. The U.S. Chamber of Commerce has urged the Biden administration to intervene, citing the potential for significant economic disruption.
Meanwhile, retailers and manufacturers are bracing for the worst. Walmart, the largest importer across all of the threatened ports, has already begun preparing for potential disruptions. Other companies, including Amazon, Ace Hardware, and Anheuser-Busch InBev, have also been impacted by the looming strike.
As the clock ticks down, logistics executives are warning that even a short strike could have long-lasting effects on the supply chain. “Shippers should not be lulled into a false sense of security during the strike, as just like during Covid, the breakdown in the supply chain did not occur until after operations resumed after shut down,” said Paul Brashier, vice president of global supply chain for ITS Logistics.
With the deadline fast approaching, all eyes are on the ILA and USMX to reach a deal and avoid a devastating port strike.
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