‘One day is too long’: Businesses fret over potential port shutdown

The looming potential strike by the International Longshoremen’s Association (ILA) on October 1st has the supply chain industry on edge. With negotiations stalling between the ILA and the United States Maritime Alliance (USMX), the main sticking point remains wage increases, as the ILA seeks compensation that reflects the rising inflation and the record profits of ocean carriers. The strike could have profound impacts on East and Gulf Coast ports, affecting industries dependent on timely imports and exports, from retail to manufacturing.

If a strike occurs, experts predict significant disruptions in the flow of goods, leading to widespread delays and potential backlogs that could take weeks, if not months, to resolve. This would impact sectors reliant on just-in-time inventory systems, with container imports already up 12.9% year-over-year in August 2024. As we approach the holiday season, businesses must prepare for potential shortages, price increases, and logistical challenges. Now is the time for companies to explore alternative routes and strategies to mitigate these risks.

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