Preparing for Supply Chain Disruptions with a Potential Port Strike on the Horizon

The possible ILA strike scheduled to potentially start on October 1, 2024, is causing retailers and manufacturers to look for ways to mitigate supply chain disruptions as they prepare for holiday season. As we learned during the pandemic, having a flexible and reliable third-party logistics partners can have a significant impact on your company’s ability to successfully navigate through disruptions.

Here are some tips on how to prepare for supply chain disruptions with a potential port strike on the horizon:

1. Monitor the labor situation closely: Stay informed about the status of contract negotiations between port authorities and labor unions. Pay attention to any signs of labor unrest or impending strike action.
2. Diversify your logistics network: Consider using alternative ports, intermodal transportation, and air freight options to reduce reliance on potentially impacted ports. Identify backup suppliers and transportation providers.
3. Increase inventory levels: Build up safety stock of critical materials and finished goods to account for potential supply chain disruptions. This can help mitigate the impact of a port shutdown.
4. Review and update your contingency plans: Ensure your company has a comprehensive supply chain contingency plan in place. Stress test the plan and make necessary adjustments to address potential port disruptions.
5. Communicate with your supply chain partners: Stay in close contact with your customers, suppliers, carriers, and other logistics providers. Collaborate on mitigation strategies and keep each other informed of any changes or issues.
6. Consider alternative shipping methods: Explore air freight, rail, or trucking options as alternatives to ocean freight. Evaluate the cost and lead time implications of these alternatives.
7. Engage with policymakers: Monitor any government actions or interventions related to the port labor situation. Advocate for policies that could help minimize the impact on your business.
8. Be prepared for delays and increased costs: Expect potential delays in cargo movement and higher transportation and storage expenses during a port strike. Factor these into your planning and budgeting.

By taking these proactive steps, shippers can better prepare for and mitigate the risks associated with a potential port strike in the U.S., ensuring the continuity of their supply chain operations.

For those in need of additional warehouse space, Sunland currently has flexible capacity available in multi-client warehousing facilities on the West Coast, East Coast, and in the Midwest. We are ready to help support and have High Performance Teams ready to receive your inventory. Please reach out to [email protected] or call 864.688.0350 to learn more.