As a potential dockworker strike on October 1 looms for major U.S. East and Gulf Coast ports, shippers and forwarders are exploring alternative routes and preparing contingencies to minimize supply chain disruptions. Planning ahead is a crucial step to mitigating the potential impact.
The Impact
• Work stoppages: Key East Coast and Gulf Coast ports, including major hubs such as New York/New Jersey, Savannah, Charleston, Houston, Miami, and Port Everglades would be affected.
• Disruption to freight networks: Significant disruption of supply chains, in particular for time-sensitive imports such as automotive, retail, and pharmaceuticals. Costs and delays will rise.
The Scenarios
• One-to-two-day strike: Operations at major East and Gulf Coast ports will cease. Ships would remain anchored offshore, and Container Freight Station (CFS) facilities would face backlogs. Warehouses and transportation hubs would see delays, but likely manageable in the short term.
• One-to-two-week strike: Severe congestion at ports as CFS facilities struggle to process backlogged containers. Warehouses would be overwhelmed, and transportation networks like trucking and rail would experience significant strain, resulting in increased costs and longer delays.
The Options
- Early Planning: Move goods earlier to avoid delays.
- Government Action: The U.S. government might step in to pause the strike for 80 days.
- U.S. West Coast Routes: Consider re-routing via West Coast ports instead of the East.
- Canadian Routes: Use Canadian ports to reach Midwest locations.
- Alternative Transport: Airfreight could be an option for urgent shipments.
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Source: Shipco Transport
