Preparing for a Potential Port Strike: What Shippers Need to Know

As tensions rise, global shipping giant Maersk has urged shippers to act fast. The company has advised customers to clear their containers from U.S. Eastern Seaboard and Gulf Coast ports in anticipation of a potential longshore strike. Maersk has also asked shippers to return empty containers ahead of the contract expiration date.

In a statement posted on its website, Maersk highlighted the uncertainty surrounding the labor situation and the potential impact on port operations. With the possibility of a strike on the horizon, the company is taking proactive steps to mitigate the disruptions and ensure that its supply chain remains as unaffected as possible.

Shippers are encouraged to plan ahead and prepare for potential delays, as the strike could lead to a backlog of containers that may remain stuck at the ports for the duration of the work stoppage.

In addition, Maersk separately on Tuesday said delays and disruptions have created gaps in its Asia-North America network, forcing it to blank, or cancel, voyages on a half-dozen Asia-North America services. This will negatively impact available capacity potentially resulting in increasing ocean freight charges.

As the threat of a port strike looms, pressure is mounting on both the ILA and the USMX to reach an agreement. Trade groups and logistics providers have been urging the sides to return to the negotiating table, fearing the economic impact of a prolonged work stoppage.

The Biden administration was previously involved in facilitating talks and encouraging both parties to find common ground, this resulted in an extension and a 62% pay raise over a new six-year master contract and current contract extension while resuming negotiations. The ILA however wants additional protections enacted to prevent automation. During a meeting in Florida, President-elect Donald Trump voiced support for the ILA, signaling the potential for increased federal involvement if the negotiations reach an impasse.

The industry is watching closely, hoping that the resumption of negotiations will lead to a resolution before the January 15 deadline. However, if the talks break down, the consequences could be severe. The last strike in October disrupted operations at numerous ports, causing significant delays in container handling and vehicle unloading. A similar event in January could have far-reaching negative economic implications for both domestic and international trade.

To avoid disruptions caused by port congestion, shippers should consider pre-positioning goods at strategic locations, especially before peak seasons. Proactively moving inventory to key locations ahead of time ensures you have sufficient stock and can avoid delays due to unexpected disruptions at the ports. By planning ahead, shippers can maintain a smoother flow of goods and reduce the risk of last-minute stress.

Proper planning is essential to minimize delays, particularly when potential strikes or congestion are anticipated. Review your shipment schedules and adjust timelines accordingly, allowing for extra time to account for port delays. If you're a distributor, ensure your production cycle remains unaffected and gather additional inventory to maintain operations. Clear, timely communication with TLI about any urgent shipments will help prioritize these loads and ensure they are handled with urgency, preventing delays and ensuring critical shipments are addressed swiftly.

Stay informed with ongoing updates from TLI regarding port negotiations and potential strikes. By staying connected with us, you can adjust your strategy quickly as the situation develops. If congestion or a strike is expected at your primary port, TLI can explore alternative port options, reroute shipments, and provide updated quotes. This flexibility ensures your shipments continue moving even if the primary port is overwhelmed, helping to mitigate delays and maintain business continuity.