Logistics Providers Warn of Congestion, Lingering Effects of Possible East and Gulf Coast Port Strike

As the U.S. supply chain readies itself for a potential labor strike at East Coast and Gulf Coast ports on Oct. 1, CBP and transportation and logistics providers are helping the trade community develop their Plan Bs.

CBP officials explained on a Sept. 26 call about the potential port strike that the agency cannot conduct cargo inspections until port employees -- the ones who are threatening to strike -- take the cargo off the ship (2409260064). But CBP officials also said that day that they have set up a command center that will help keep the trade community abreast of procedural adjustments related to imports.

Meanwhile, the Customs Committee of the National Customs Brokers & Forwarders Association of America has developed guidance for members to help them navigate through a port entry change for diversions with CBP, according to an emailed Sept. 26 member alert. The trade association also said the guidance is helpful for supply chain disruptions in general, including severe weather events at the ports.

Logistics provider C.H. Robinson said in a Sept. 26 client advisory that some ports will offer extended gate hours this weekend to allow importers to remove containers ahead of the strike.

The Port of Virginia has indicated when it will wind down cargo operations at terminals, while the South Carolina Ports Authority sent out a service advisory detailing how it will handle empty containers and the Port of Houston indicated that container terminals would shut down if a strike occurs.

C.H. Robinson also noted that several ocean carriers have made vessel schedule and routing changes ahead of Oct. 1.

C.H. Robinson and others warned that the transportation network could get congested as shippers seek to divert cargo to the West Coast ports or opt to ship by air -- and that congestion may linger for awhile.

"In the event of a strike beginning October 1, contingency routes could become overwhelmed very quickly. 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," the logistics provider said.

"Regardless of whether there is a strike or not, the diversion effects are already baked in for at least the next six weeks if not longer. Overall volume should begin to ease up quickly as a substantial percentage of Q4 traffic has been upstreamed to arrive earlier than normal in anticipation of the disruption. But likely we won't see much breathing room on the west coast until late this year at the earliest," intermodal expert Larry Gross said in a LinkedIn post.

The International Longshoremen's Association has pledged to go on strike on Oct. 1 if a new labor agreement can't be reached between the ILA and the U.S. Maritime Alliance, which represents terminal operators. The current agreement expires on Sept. 30. At stake are issues over pay and the use of automation at the ports.