Factbox: Companies Prepare for US East Coast Ports Strike – Reuters

Approximately 45,000 union workers initiated a strike at seaports along the U.S. East and Gulf Coasts on October 1, disrupting critical trade just a few weeks before the presidential election.

The International Longshoremen’s Association (ILA), which represents dockworkers at 36 ports in the region, is currently at an impasse with the United States Maritime Alliance (USMX) over wage disputes. This marks the first coast-wide ILA strike since 1977, impacting around half of the country’s ocean shipping. Industry experts indicate that a strike lasting two weeks could delay the return to normal port operations until 2025.

Global companies and interested parties have shared their responses to the unfolding situation:

– Costco has put contingency plans in place, which include shipping products earlier to ensure holiday goods arrive on time and utilizing alternative ports, as stated by CEO Ron Vachris.

– Maersk, the prominent Danish shipping and logistics firm, warned in August that even a week-long work stoppage could lead to a backlog that takes 4 to 6 weeks to resolve. They emphasized that delays would accumulate over time.

– C.H. Robinson has been proactively aiding clients in importing freight earlier and diversifying transportation routes. Mia Ginter, director of North American shipping, noted that shifting significant volumes to the West Coast could strain rail services and increase reliance on trucking and transloading.

– Maher Terminals and APM Terminals, members of the USMX, announced extended hours at the Port of New York and New Jersey to help clear cargo ahead of the strike.

– The Garden City Terminal in Savannah and the Norfolk International Terminal in Virginia have also prolonged their operating hours to facilitate cargo clearance.

– Hapag-Lloyd is monitoring the strike and promises to keep customers informed about developments.

– Stihl AG, the German manufacturer, is also devising contingency plans to maintain export flows from its factory near Virginia, though specific details were not disclosed.

– Designer Brands, which oversees DSW, noted that half of its usual imports are being rerouted from the East Coast to the West Coast to prevent delays in deliveries to major retailers such as Macy’s, Nordstrom, and Dillard’s, even at increased shipping costs.

– Jay Timmons, CEO of the National Association of Manufacturers, stated that the strike would severely disrupt manufacturing supply chains across the nation, affecting billions of dollars’ worth of goods, from food to vehicles to electronics.

This widespread strike underscores the crucial role of East and Gulf Coast ports in the national supply chain.