The ILA  strike at 6 of the 10 US ports all on the East and Gulf coasts will have an impact for shippers. As we start to enter the Retail Season the pressure to settle and move on is intense.

What does that mean to you as a shipper? First off, you will not be able to get your containers unloaded or delivered if they are on the water and headed to any of the affected ports. The ships they are on will just bunch up waiting for a settlement to take place so they can be unloaded. At some point they may be re-routed to open ports other than those affected by the strike. Meaning you will have to go further than anticipated to truck the product to your distribution system and it will cost more in both time and money.

The bottom line is that things will get messy and stay that way for a while. Any time the network is impacted by a “Black Swan” event such as a major labor strike, it puts the ebb and flow of goods out of kilter. Movements that were routine suddenly disappear and the carriers and shippers have issues finding, loading, and using carriers they used to count on. After the dust settles on a strike, it usually takes a considerable amount of time for things to get back to normal.

If you have already made some adjustments in your supply chain in anticipation of the strike, good for you. That should help you weather the storm no matter how long it lasts. If you have not done anything, either because you do not anticipate that the strike will come off, or if it does, that it will not last very long, then the supply chain you use may be at risk. The good news if any is that history tells us that the east coast strikes do not last long. Although the Federal government has not stated that they will step in and force mediation, with a mandatory 80 day cooling off period, I believe if the strike drags on for weeks rather than days, they (federal authorities) will intercede and force some form of mediation. Although by then your supply chain will be negatively impacted and you will be very anxious to get it re-started as soon as possible. Depending on what sector you operate in, manufacturing, distribution or retail, this strike could have grave consequences on your bottom line. If your business depends on the retail season for most of its revenue stream, but your goods are out on the water sitting, you could end up having an unbelievably bad year.

Here are some suggestions on how to deal with the strike.

1. Do not panic, chances are the strike will not last long before someone intervenes. There is too much at stake for it to be allowed to go on for very long, especially in an election year. The federal Government will more than likely step in to quash a strike as quickly as possible. This should minimize disruption and allow the network to get back in synch.
2. If the strike goes on longer than anticipated, be prepared to change your supply chain to include other ports of entry. Just remember that you will not be alone in thinking this way, so there will be a scramble to re-route and re-shore supply to fulfill shipping needs.
3. Get help from a 3PL. If anyone sees the big picture it is a 3PL. They usually have a much broader advantage than most when looking at the supply chain and should be able to help provide consultation on where to re-route, how to re-route and with whom to re-route. Do not go it alone, get someone with a broader perspective to help you adjust to the changes needed.
4. Modal shifts are an option for “must have” quantities of goods. You may need to look at faster, more expensive modes such as air freight options to bring in just enough product to get you through the strike period. Although they are much more expensive than ocean freight, air freight has the advantage of completely bypassing the port system and getting goods to you in days not weeks or months. The added expense might turn out to be a life saver to get your business over the hump during any strike period.
5. Mexico and Canada have ports that might be useful as alternative importing or exporting sites for your products. Although you may not have experience using them, quite a few very viable ports exist in both countries that would not be affected by the strike and could allow you to continue to move your products. A 3PL is invaluable in this case because they have the contacts and expertise to make this shift work for you. They can also help you avoid costly mistakes during the process.
6. The last suggestion centers around geography. If your supply chain is heavily skewed to using the east coast right now, an ILA strike could shut you down. To avoid that possibility, look to the west coast for some relief. Transits across the US from the west coast may add a week to your timelines, but at least it would allow you to bring in or ship out product internationally. Intermodal Landbridge movements take place in lieu of direct to port moves. In this case you can avoid the East Coast ports by bringing products into West Coast ports and running it by rail or truck to your distribution network. Just another option to bypass the impact of the strike.

Even though you did not plan for a strike, you still have options to mitigate its impact. I am hopeful there will not be any serious repercussions, and the strike will be settled quickly. Better yet maybe it will not happen at all and will get an eleventh-hour reprieve. If that happens then you can breathe easy and consider yourself lucky. Hopefully, one of the above suggestions may be viable for you to manage the impact of a strike. Good luck!