DISRUPTION ON THE HORIZON: STRIKE IN THE USA

After narrowly defused conflicts in Australia and India, and the end of strikes in Germany and Canada, the USA is also facing major turbulence in its supply chains due to a strike and logistics disruptions across the East Coast. The fallout from a dockers’ strike in this part of the US promises a complicated start to autumn.

THREAT OF CONGESTION DUE TO DOCKWORKERS’ STRIKE ON THE U.S. EAST COAST

The situation is particularly critical on the US East Coast, in the midst of the presidential election campaign, where the threat of a strike by dockworkers from the International Longshoremen’s Association (ILA), which has been underway since October 1, 2024, could paralyze major ports. Negotiations would only come to an end with the signing of an agreement between the parties involved over a six-year period. However, discussions are stagnating between the ILA and the USMX (United States Maritime Alliance), with the union calling for a substantial wage increase and rejecting the introduction of automation, deemed dangerous for the continuity of current jobs.

A CONSEQUENT IMPACT ON THE ENTIRE SUPPLY CHAIN

According to Sea-Intelligence, a strike would result in a backlog of 74,000 TEUs (twenty-foot equivalent units) per day, and would take several weeks to return to normal. Ports could struggle to cope with this overload, even with a possible excess capacity of 13% over the normal flow.

This logistics crisis could affect not only USEC ports, but also lead to major congestion on the US West Coast, where importers are already diverting part of their cargo to avoid disruption.

The direct repercussions could extend as far as the Port of Montreal. Companies seeking to avoid USEC ports could divert part of their cargo to the major Canadian city, which is likely to see a sizeable influx of goods.

It should also be noted that the air transport sector, currently at a peak in its activity, could be much more solicited in the run-up to the end of the year to compensate for the maritime disruptions.

Ultimately, the entire supply chain would be affected by the strike in the U.S. East Coast ports, which represent a major point of entry into the country for goods from Asia, Europe and Latin America.

Most shipping companies are planning to introduce surcharges or port charges, and anticipate delays of between four and six weeks if the strike continues.

This crisis underlines the interdependence of supply chains and the need for flexible solutions to social conflicts. In this uncertain context, Balguerie Groupe has positioned itself as a reliable partner, offering suitable alternatives to minimize disruption and guarantee business continuity for its customers, thanks to its expertise and international network.