About the Impending Dockworkers Strike 

The threat of dockworkers strikes on the East and Gulf Coasts has sent ripples of concern through the supply chain. With negotiations at an impasse between the United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA), a strike could begin as early as October 1st.  This dockworkers strike could create additional risks for cargo, as supply chain adjustments may lead to additional damages without proper cargo securement. Below we will outline a brief overview of the strike, the potential disruptions caused to shipping, and how the situation highlights the need for cargo securement.

Founded in 1892, the ILA’s longtime purpose has been to unify longshore workers to improve working conditions and wages. The ILA’s members work at some of the United States’ busiest ports, including: 

• New York and New Jersey: one of the largest port complexes in the U.S. 

• Baltimore: a key hub for cargo and shipping. 

• Norfolk, Virginia: a vital port for military and commercial shipping. 

• Charleston, South Carolina: an important container port. 

• Savannah, Georgia: which is known for its significant container traffic. 

• Miami: a major gateway for trade with Latin America. 

• New Orleans: an essential port for cargo and bulk shipping. 

• Houston: a critical port for oil and other commodities. 

Source: Lockton 

According to Harold Daggett, the ILA union president, longshoremen stand ready to strike once their contract expires on Sept. 30. 

“We are very far apart,” Daggett said. “Mark my words, we’ll shut them down Oct. 1 if we don’t get the kind of wages we deserve.” – Source, TransportTopics 

Analysts report that the fallout of even a short strike would be costly for many retailers, manufacturers, and other importers heading into Q4. While supply chains are still expected to run relatively smooth, each week cargo is stalled, backlogs are expected to take a month to clear. If the strike moves forward, it will be the first large U.S. maritime hub disruption since a nine month standoff in 2014. This strike would also represent the first ILA strike on the east coast since 1977.

How the Dockworkers Strike Highlights the Need for Cargo Securement 

This potential disruption underscores the critical need for businesses to prioritize cargo securement. Here’s why: 

• Strike-Related Delays Exacerbate Existing Cargo Damage Risks: Freight damage is a constant concern, but strike-related delays would magnify the risk. Prolonged shipping times mean goods spend more time in transit, increasing the likelihood of damage from improper handling, inadequate packaging, or accidents during loading and unloading. 

• Lean Inventories Offer Little Buffer: As highlighted by logistics experts, industries operating with lean inventory models are most vulnerable to strike-related disruptions. Robust cargo securement becomes even more critical in these situations, as businesses have less room for error and every shipment counts. 

Mike DeAngelis, Senior director of international solutions at FourKites said “A strike could also lead to inventory shortages, potentially impacting holiday shopping seasons and year-end manufacturing targets,” he said. “While West Coast and Canadian ports would see a surge in traffic, they cannot absorb all the volume from the East and Gulf Coast ports. And the influx of freight could cause weeks-, if not monthslong backlogs.” – Source  

• Freight Claim Backlogs Add to the Burden: A surge in shipping carrier freight claims is likely if a strike occurs, potentially leading to processing backlogs and further delays in reimbursements. Beyond business adjustments to avoid supply chain delays, preventing damage in the first place remains the most effective way to avoid financial strain. 
• Rapid movement of intermodal containers and transloading: With stagnated cargo comes increased pressure from organizations to utilize alternative options or move freight quickly once service is returned. This high pressure situation can cause additional damage claims or concealed damage due to improper movement of intermodal containers or poor-quality transloading practices.

Cargo Risks with Supply Chain Adjustments:  

Logistics service providers have given shippers some recommendations ahead of a potential strike. Organizations will face heavy delays to freight in transit to East and Gulf Coast Ports while contending with limited options to redirect freight via Canada and Mexico.  

According to transport topics: if there is a strike, transportation analysts say West Coast ports could pick up some additional freight that may be diverted from Eastern ports, especially from Asia. But they couldn’t handle it all. Neither could the U.S. rail system. 

“The East Coast has grown a lot,” said Ben Nolan, a transportation analyst with Stifel. “There’s just no way to get around it.” 

Other recommendations organizations should consider are: 

• Preparing for significant increased demand and congestion at U.S. West Coast ports and in domestic U.S. rail and truck freight lanes, as shippers reroute to avoid disruption. 

• Transferring landed cargo via intermodal and ground freight. 

This adds to the potential cargo risks that increase freight damage claims, as these freight transfers and increased traffic on road and rail can cause additional shifts in your cargo loads adding to the potential for damage claims and concealed claims.   

“Contingency routes could become overwhelmed very quickly,” C.H. Robinson Worldwide Inc., one of the largest U.S. freight brokerages, said in an alert last week. “A significant volume shift to the U.S. West Coast would not only challenge the ports but also rail services, which may require more use of truck and transload services.” 

It is important to note, that “a lot of things could go wrong during transloading. If the transloading company entrusts your shipment to the hands of incompetent employees, there’s no telling how much damage they could do to your freight.” This is when it is imperative to ensure both your intermodal cargo and any transloading is secured using the best freight securement technology. 

Logistick, Inc.: The Best Load Securement Equipment 

Logistick offers a range of cargo securement solutions designed to mitigate risks and safeguard your shipments, particularly during times of uncertainty. Here’s how Logistick helps: 

• Superior Holding Power: Logistick’s load bars boast more than five times the holding power of standard metal load bars, providing enhanced protection against shifting and damage. 

• Ease of Use: Logistick products are designed for quick and easy installation and removal, improving efficiency and reducing the risk of errors during loading and unloading. 

• Cost-Effectiveness and Sustainability: Manufactured from durable, recycled plastic, Logistick products offer a cost-effective and environmentally responsible solution for cargo securement. 

Don’t wait for a supply chain disruption to highlight the importance of cargo securement. Invest in reliable solutions like those offered by Logistick and gain peace of mind knowing your shipments are protected.