As master-contract talks between the International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) evolve, an East and Gulf Coast port strike could be in less than a month. Shippers should start preparing, as significant disruptions are imminent with the potential strike.

With the current contract ending in less than a month, no industry would be exempt from disruptions should a port strike be called. Both U.S. importers and exporters need to consider how a port closure would impact their freight now. Shippers with freight across Europe, Oceania, and Asia bound for the U.S. will especially feel the impact. 

Industries with just-in-time inventory models, including automotive and pharmaceuticals, could be significantly disrupted in as little as two days of strike activity. 

The “wait and see” versus “contingency plan” options could become significant. Waiting it out and handling any disruptions if a strike happens could have a dramatic impact for shippers. Whereas, making contingency plans now would reduce the impact of a strike on their shipments and balance sheets.

Preplanning is essential – get ahead of a potential strike by shipping cargo into the U.S. earlier than usual this year. Consider alternative port destinations, keeping in mind that planning for inland truck and rail will be a critical component for cost savings and risk mitigation. Also, alternative ports and transportation modes could quickly become overwhelmed in the event of an ILA port strike. 

Shippers that want to be prepared should be exploring contingency options today. 

John S. Connor stands ready to help with your shipping timelines, alternative port destinations and inland truck and rail opportunities.