Companies have planned for US East Coast ports strike

Some 45,000 union workers walked off the job at seaports on the U.S. East and Gulf Coasts on Oct. 1, cutting off vital trade arteries just weeks ahead of the nation's presidential election.

The International Longshoremen's Association (ILA) union, which represents dockworkers across 36 ports on the U.S. East Coast and the Gulf of Mexico, remains deadlocked with the United States Maritime Alliance (USMX) employer group on wage issues.

The stoppage is the first coast-wide ILA strike since 1977 and halts the flow of about half the nation's ocean shipping. A two-week strike could mean that ports would not return to normal operations until 2025, according to Sea-Intelligence, a Copenhagen-based shipping advisory firm.

Here is what global companies and stakeholders have said regarding a potential strike:

Costco U.S. retailer Costco's contingency plans

Wholesale include pre-shipping some products to get in

  holiday goods early and preparing to use

different ports, Costco's CEO Ron Vachris said

last week.

Maersk  The Danish shipping and logistics giant said on

Sept. 30 a longer dispute may exacerbate

disruptions, affecting import and export

activities, container availability, and overall

operational efficiency. 

The company has said it will introduce a port

disruption surcharge on all cargo moving to and

from the U.S. East Coast and Gulf Coast

terminals from Oct. 21 ranging from $1,500 to

$3,780 a container.  

C.H. "We have been working on contingency plans with

Robinson customers for months, helping them import

freight early and diversify freight to other

ports," Mia Ginter, director of North American

shipping, told Reuters. A significant volume

shift to the West Coast could challenge rail

services, requiring more use of truck and

transload services, Ginter added. 

Maher Maher and Maersk's APM, which are members of

Terminals the employer negotiating group (USMX), said

and APM they were keeping their terminals at the Port

Terminals of New York and New Jersey open for two

additional hours to clear cargo before the

potential strike.

Garden The Garden City Terminal at the Port of

City Savannah and the Norfolk International Terminal

Terminal at the Port of Virginia have also extended

and their gate hours for the weekend before Sept.

Norfolk 30 to clear cargo.

Internati

onal

Terminal

Hapag-Llo The shipping giant has said it is closely

yd monitoring the strike situation and will keep

customers involved as developments unfold.

Andreas The German chainsaw manufacturer Andreas Stihl

Stihl AG AG & Co told Reuters it is also developing

& Co contingency plans to keep exports flowing from

its factory near the Port of Virginia, but

didn't elaborate. Stihl's U.S. plant ships

products to over 80 countries.

Designer Ronnie Robinson, chief supply chain officer at

Brands DSW parent company Designer Brands, said the

company has shifted half of its usual imports

through the East Coast to the West Coast.

Robinson added that his company cannot risk

late deliveries to clients like Macy's,

Nordstrom, and Dillard's department stores,

even if it means paying more for shipments. 

National NAM CEO Jay Timmons said a strike would throw

Associati manufacturing supply chains throughout the U.S.

on of into disarray. "Billions of dollars of goods -

Manufactu from food to vehicles to electronics - rely on

rers access to the East and Gulf Coast ports,"

Timmons said on Monday. 

Inter "We are closely monitoring the situation and

IKEA, hope for an agreement between the parties as

which soon as possible. It is too early to comment on

makes any possible constraints the strike might have

IKEA on our supply chain."

furniture