As the clock ticks forward towards a potential strike by East Coast dockworkers, retailers across the United States are scrambling to move billions of dollars’ worth of cargo. The dockworkers’ contracts are set to expire on September 30th, and negotiations between the dockworkers’ union and the U.S. Maritime Alliance, which represents marine terminal operators and shipping companies, have been less than successful.
This potential massive disruption of the supply chain comes at a time when retailers are already grappling with the fallout from the pandemic, the chip shortage, and unprecedented levels of demand. As stocking up for the holiday season is already in motion, the possibility of a strike has further pushed the retail industry into crisis mode.
Major port cities like New York, Savannah, and Charleston, which are among the busiest in the U.S., will be hugely impacted if the workers decide to strike. Furthermore, the strike would not only influence the ports themselves but also the coherent logistics like trucking and railroad companies that transport goods away from the ports.
Retailers and other businesses rely on these ports to import goods like clothing, electronics, furniture, and toys. As a result, should the strike happen and last a significant amount of time, U.S. consumers could suffer from shortages and higher prices.
To defend against this possible disruption, retailers are moving as much cargo as they can in advance of the strike. They are reserving as much warehouse space as they can find, rerouting shipments to avoid the East Coast, and even resorting to chartering private cargo planes to get goods stateside.
While businesses always prepare for potential supply chain disruptions, the magnitude of the current situation is unprecedented. The dockworkers’ potential strike, coupled with the already chaos-stricken logistics industry, has created a perfect storm for retailers who are scrambling to ensure goods are on shelves for the lucrative holiday shopping season.
