Labor disputes at major shipping ports along the Eastern Seaboard
Along the Eastern Seaboard of the United States, 65,000 longshoremen, checkers, clerks, and other port employees are preparing for a potential strike, the first since 1977.
The International Longshoremen’s Association (ILA) represents many of the dockworkers along the East Coast ports and is the largest union of maritime workers. Dozens of ports could be impacted by this looming strike, from Boston down to Miami and over to New Orleans, including the Port of New York and New Jersey— the largest port on the East Coast.
The ILA is seeking increased wages, restrictions on automation, revisions to benefits and health care, and enhancements to safety protocols and working conditions, along with other key demands according to Reuters.
How could warehouses be impacted by a strike, and what can you do to prepare?
- Disruption to Supply Chains: Delayed inbound shipments will significantly impact just-in-time inventory systems. Sea-Intelligence has estimated a one-day strike by the ILA would take five days to clear.
- Backlogs & Congestion: After the strike, there is a likelihood of a surge of goods that could overwhelm warehouse capacity.
- Inventory Struggles: Maintaining inventory levels may become volatile when inbound goods are delayed. This can result in missed sales and unhappy customers—especially on the cusp of the holiday season.
- Labor Challenges: Warehouses may need to adjust labor schedules due to the sudden slowdown followed by a surge of shipments. This could lead to increased costs, particularly during the surge when overtime pay may be required.
To prepare for this potential strike, one strategy is to stockpile inventory now. As the holiday season approaches, ensure your customers can receive their goods and that you are able to meet your targets.
Work with your suppliers to confirm they have a plan in place in the event of a strike, such as rerouting inbound shipments or collaborating with 3PLs.
Clear communication and superior customer service will be crucial during this period of uncertainty. Setting up customer alerts to notify them of potential disruptions to delivery schedules or offering substitute products can demonstrate your commitment to going the extra mile in a challenging situation.
Ensure your warehouse operations are agile. This may include transparent communication with your warehouse workers, securing temporary off-site storage, fine-tuning your inventory tracking, or implementing technology that allows for flexibility.
Stay informed and keep your eyes to the East.