Freight forwarder warns: Eastern US ports will be shut down for the second time

Sunny Worldwide LogisticsIt is a logistics company with more than 20 years of transportation experience, specializing in markets such as Europe, the United States, Canada, Australia, and Southeast Asia. It is more of a cargo owner than a cargo owner~

In early October, strikes at U.S. Eastern and Gulf Coast ports ended after three days, an outcome that brought widespread relief across the industry. While it will still take some time for affected ports such as Savannah to clear congestion, the strike did not bring system-wide paralysis as widely feared.

Shippers have had mixed reactions to the strike. Some believe a renewed standoff between unions and port employers in January won't pose a huge threat because cargo owners have become weary of such issues over the past few years after continuous threats of work stoppages in the U.S. and Canada. However, there are also concerns that the problem will flare up again and could last longer, causing severe impacts on traffic flow.

Bob Imbriani, senior vice president of international for freight forwarding company Team Worldwide, said many of their customers are not too concerned about a second shutdown. He noted that if Donald Trump wins the upcoming US election and returns to the White House, he may be more inclined to intervene in such incidents.

Dave Minnebach, vice president of global ocean business development at AIT Global Logistics, noted that the annual surge in shipments associated with the Lunar New Year coincides with the potential port showdown, but the majority of shipments to the U.S. East Coast The volume does not originate from China, so this is only a minor issue.

Unlike many clients, however, Team Worldwide executives see the January strike as a major concern. They are preparing for a long battle over automation that could lead to a reduction in the port workforce. Employers say they intend to address the problem through attrition rather than layoffs, but that could leave individual workers less of a threat and an existential issue for unions whose numbers will fall as the The passage of time weakens its position.

Some shippers expect the January standoff to be longer and more chaotic. Stakeholders expect U.S. Eastern and Gulf Coast ports to indeed see shutdowns in January, and if another strike occurs, it could take longer to resume work.

In response to this potential risk, some shippers such as Levi Strauss and Newell Brands have taken steps to ensure the security of their inbound cargo, particularly by shipping some, if not all, waterway imports through the West Coast gateway.

However, Gene Seroka, executive director of the Port of Los Angeles, said he had not heard of any shippers diverting imported cargo to California in response to the October strike. Minnebach commented that some cargo owners are actively exploring emergency measures, such as rerouting cargo through Canadian ports. But this approach comes with risks, as ports such as Montreal could also face strikes.

Imbriani said if the East Coast and some Gulf Coast ports are abandoned, there will be few options. He also pointed out that importers are trying to speed up shipments to adjust inventories before the shutdown, which has led to the early arrival of the peak season for container shipping this summer. However, now is not the best time to increase inventory as everyone is busy with the peak season. Furthermore, the chances of taking action are slim, as some ships remain on the water for up to 30 days.