Shippers scramble for workarounds as US port strike looms


STORY: A potential strike at East and Gulf Coast ports is already causing chaos for U.S. companies, as three dozen ports with 45,000 workers could shut down as soon as Oct. 1.

Many shipping firms are now scrambling to import early, shift goods to the West Coast, and even put cargo on pricey flights to get ahead of the potential strike.

The dispute between the International Longshoremen’s Association union and the United States Maritime Alliance employer group hinges on pay, with current contract terms expiring at midnight on Sept. 30.

As a result, companies like DSW parent Designer Brands have been forced to come up with workarounds, as the fashion firm normally routes about 20% of its shoe imports through the East Coast.

According to its supply chain officer, it has now shifted about half of those goods to the West Coast and paid ten times more than a typical ocean transit to fly in a small shipment of leather boots and dress shoes from Brazil.

Along with causing corporate headaches, the threatened walkout could also jam supply chains and reignite inflation ahead of the U.S. presidential election, while also putting a deeper dent in the U.S. job market – as it would be the second major U.S. strike, alongside Boeing’s ongoing dispute.



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