Forwarders brace for first East Coast port strike since 1977

Forwarders brace for first East Coast port strike since 1977

As thousands of dockworkers at major East and Gulf coast ports prepare to go on strike as early as 1st October, the sentiment among freight forwarders and shippers is one of concern and preparation.

“With the holiday season and peak shipping season on the horizon, any disruption at the seaports could severely impact supply chains,” Brandon Fried, Executive Director of the Airforwarders Association, warned.

“Forwarders are working closely with their customers to assess risks and plan for contingencies, but there’s a heightened level of uncertainty as the situation develops.”

Capacity spike

Airfreight rates are likely to increase significantly if a port strike occurs. Demand for air capacity typically rises in the lead-up to peak season, and a port strike would only exacerbate this by pushing more cargo into an already tight market. Carriers will be pressured to prioritise space, and shippers could face surcharges and higher costs as a result.

“Airfreight capacity is already stretched, and a strike would likely overwhelm the system, especially at major airports where cargo area truck congestion is a concern,” Fried explained.

“While forwarders will attempt to secure space where they can, many shippers could be forced to delay their shipments or seek alternative transportation methods. The combination of limited capacity and increased demand may leave some with no choice but to wait for the strike to resolve.”

Supply chains on edge

While the backlog from the Baltimore bridge collapse earlier this has largely been cleared, the fragile state of supply chains means that any additional disruption, like a port strike, could quickly undo the recovery efforts. The combined impact of past and potential disruptions may lead to a cascading effect, prolonging delays and compounding the difficulties shippers face.

“The duration of the strike is difficult to predict, as it depends on the negotiations between the involved parties. Even if the strike is resolved quickly, the backlog created during the stoppage could take weeks or months to fully clear,” Fried continued.

“Supply chains don’t simply bounce back once operations resume—cargo flow will be severely disrupted for an extended period as port operations recover and backlogs are addressed.”

Scarce alternatives

In the event of a strike, forwarders will look at alternative points of entry, including Canadian and Mexican ports. While these routes offer some relief, they are not a complete solution, as infrastructure limitations and capacity constraints at those ports will still pose challenges. Additionally, rerouting cargo through alternative ports involves extra costs and time delays.

“Many shippers are already taking proactive steps to mitigate the potential impact of a strike,” Fried highlighted. “Some are moving their shipments earlier than usual to avoid congestion, while others are exploring alternative transport routes and diversifying their supply chain strategies. However, the availability of these options is limited, especially as more companies try to plan ahead.”

Picture of Edward Hardy

Edward Hardy

Having become a journalist after university, Edward Hardy has been a reporter and editor at some of the world's leading publications and news sites. In 2022, he became Air Cargo Week's Editor. Got news to share? Contact me on Edward.Hardy@AirCargoWeek.com

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