US East And Gulf Coast Dockworkers’ Strike Disrupts Supply Chains

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On October 1, 2024, Reuters reported that approximately 45,000 union workers walked off their jobs at seaports on the U.S. East and Gulf Coasts, halting crucial trade routes. The strike, led by the International Longshoremen’s Association (ILA), stems from unresolved wage disputes with the United States Maritime Alliance (USMX). This disruption comes just weeks before the U.S. presidential election, potentially affecting supply chains and causing significant economic impacts.

Company Responses to the Strike

Costco has pre-shipped products and is exploring alternative ports to mitigate potential delays, while Maersk introduced a port disruption surcharge for cargo to and from affected terminals. C.H. Robinson worked on contingency plans, shifting freight to the West Coast, which could strain rail and truck services. Terminals like Maher and APM have extended operating hours to move cargo before the strike began.

Impact on Major Industries

Companies like Stihl and Designer Brands have diverted shipments to the West Coast to avoid delays, with the latter prioritizing timely deliveries to clients like Macy’s and Nordstrom. The National Association of Manufacturers (NAM) warned that the strike would disrupt the supply chains for billions of dollars worth of goods, including vehicles and electronics.

Government and Industry Reactions

The National Retail Federation urged President Biden to use his authority to restore operations quickly, invoking the Taft-Hartley Act if necessary. Meanwhile, companies like Walmart and Merit Medical Systems have made preparations to minimize the strike’s impact on their supply chains, with some opting for air transport.

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Source: Reuters