As we approach the deadline of September 30, 2024, the possibility of an International Longshoremen’s Association (ILA) strike continues to raise concerns across the U.S. supply chain. With no resolution in sight between the ILA and the United States Maritime Alliance (USMX), shippers are bracing for potential disruptions at East and Gulf Coast ports. This looming strike could severely impact 60% of the country’s container volume, especially for cargo already on the water and heading toward affected ports.
Here’s what shippers need to know and what actions they can take to mitigate the potential impact.
What We Know So Far
Negotiations between the ILA and USMX have stalled over key issues, including wages and automation, leaving many to fear a strike could begin on October 1. Unlike previous disputes, both sides are standing firm, and there’s growing concern that the U.S. government may need to intervene quickly to minimize economic damage.
The strike would effectively shut down operations at East and Gulf Coast ports, leaving cargo sitting at ports, unable to move through the supply chain. This disruption comes at a time when many businesses are stocking up for the peak season and could face significant delays and increased costs.
What Can Be Done?
While some importers and exporters have already rerouted shipments to West Coast ports or delayed shipping altogether, there are still significant volumes of cargo en route to the East and Gulf Coast ports that cannot be rerouted. Unfortunately, once cargo is on a vessel, it becomes virtually impossible to change its destination, leaving shippers with limited options for those shipments.
However, there are still proactive measures that shippers can take for cargo that has not yet shipped or for future shipments during the strike period:
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Air Freight as a Critical Alternative For time-sensitive or high-value goods, air freight may be the best option to ensure delivery during the strike period. Although air freight is more expensive, it provides an essential alternative to avoid potential congestion at the ports. Averitt can offer air services that can help shippers move urgent cargo to avoid lengthy delays.
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Rerouting to the West Coast For shipments that have yet to leave the port of origin, rerouting through West Coast ports such as Los Angeles, Long Beach, or Seattle may be an option. However, shippers should be aware that these ports are already handling increased volumes, and congestion at the West Coast ports and rail ramps could create further delays.
Additionally, Averitt's Asia Express Service is an LCL offering transit via the West Coast from points across Asia, including Central China. While major ocean liners often used shared terminals, the Asia Express is serviced by Matson, which operates its own terminal, ensuring that its customers can be unloaded as quickly as possible. -
Intermodal Solutions for Inland Distribution Intermodal transport offers a flexible solution to move cargo inland once it arrives at alternative ports. By combining rail and truck transport, Averitt can help shippers bypass congested ports and ensure cargo reaches the Midwest or East Coast.
Averitt’s Solutions for Managing the Crisis
Averitt’s extensive network and flexibility mean that we are well-positioned to help our customers navigate this challenging situation. Here’s how we can help:
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Air Freight Services: For urgent shipments, Averitt’s air freight options can bypass port delays entirely, ensuring that critical goods are delivered on time.
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West Coast Routing: With access to major West Coast ports, we can assist in rerouting your cargo before it leaves the port of origin, minimizing supply chain disruptions.
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Intermodal and Cross-Border Options: Our intermodal services can move your cargo through less congested rail routes, while our cross-border capabilities allow you to explore alternative entry points through Mexico and Canada.
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Secure Storage Space For Excess Cargo: As congestion at ports across the nation face the potential for disruptions, many importers will likely bring in excess inventory to help make up for delays. The Averitt Distribution and Fulfillment network offers more than 3 million sq. ft of secure warehousing space across major markets to provide inbound cargo processing and storage.
Moreover, Averitt’s dedicated team is prepared to provide customized solutions for any disruption that occurs. With assets across major ports, including our Southeast and Gulf Coast facilities, we stand ready to help our customers "clean up the mess" and restore order to their supply chains once the situation is resolved. And as always, we prioritize our current customers, ensuring that they have the support they need during this critical time.
Leveraging Averitt’s Asia Express for Seamless Import Solutions
Averitt's Asia Express Services are designed to offer shippers a reliable, efficient, and cost-effective solution for importing goods from Asia to the U.S. This integrated service consolidates shipments from multiple locations in Asia and transports them via the West Coast, with final distribution hubs in Memphis, TN, and Dallas, TX. Once the shipments arrive, they are swiftly distributed across the country, providing a seamless, end-to-end logistics solution. This service is ideal for businesses seeking to optimize transit times and reduce costs while ensuring timely and efficient delivery.
Key features include:
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Fast, Reliable Transit: With expedited ocean and air shipping options, Averitt's Asia Express provides faster delivery times compared to traditional ocean freight, ensuring that high-priority cargo reaches its destination promptly.
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Customs Clearance and Visibility: Averitt handles customs clearance and offers complete shipment visibility, providing shippers with peace of mind and real-time tracking throughout the journey.
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Strategic Distribution Hub: Once the cargo arrives in Memphis or Dallas, Averitt’s centralized distribution network enables swift, cost-effective transportation to final destinations across the U.S., making it an ideal solution for businesses with high-volume shipping needs.
In the face of potential disruptions like an ILA strike, Averitt’s Asia Express serves as a strategic alternative for shippers seeking reliable import solutions. This service allows businesses to reroute shipments through the West Coast and then distribute products across the U.S. via Memphis, ensuring supply chain continuity even during periods of uncertainty.
Prepare Now for the Potential Strike
As the deadline for a new agreement draws near, it's essential for shippers to review their supply chain strategies and make contingency plans. Whether it's through rerouting, intermodal solutions, or air freight, the time to act is now. The potential disruption may be unavoidable, but with Averitt’s comprehensive logistics services, you can minimize the impact on your operations.
Contact us today to learn how we can support your business through this uncertainty and ensure your supply chain remains strong.
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