As the freight industry braces for potential US port strikes, the unrest among labor unions is poised to disrupt not only national logistics but also global supply chains.
Major hubs like those on the East and West Coasts are on the brink of significant slowdowns or even complete standstill.
In this article, we will delve into what US port strikes can mean for America and the rest of the world. Join us as we unveil what this can mean for global industries and clients who need to ship heavy machinery internationally, but also for those who rely on the import of cargo to the US.
The Current Situation: A Brewing Storm
The International Longshoremen’s Association (ILA) is at the center of the impending disruption.
If the ILA strikes, experts predict delays of several weeks on both coasts, exacerbating an already tense situation. The demand spike on the West Coast in August and September has left ports congested, and a strike would only intensify the backlog.
Moreover, carriers are likely to seize this opportunity to stabilize and then increase rates, starting as early as October 1st or 15th.
Historically, similar disruptions have led to rate hikes of thousands of dollars, as carriers adjust to the congestion and delays.
According to recent announcements from major shipping companies, we could see additional port charges of up to $3,000, further inflating costs for businesses and consumers alike.
Historical Impact of US Port Strikes on Shipping
Historically, US port strikes have had severe consequences on the shipping and freight industry.
The 2014-2015 West Coast port dispute resulted in an estimated $2.5 billion in lost sales for U.S. retailers, according to the National Retail Federation (NRF).
During that period, cargo volumes dropped by 10%, and the disruptions took nearly a year to resolve fully.
In the current scenario, even if a strike on the East Coast is averted, significant congestion is expected.
The government’s involvement, potentially forcing arbitration, might get workers back to the docks, but operations would likely slow to a crawl.
The infrastructural issues that plagued the West Coast during the last major dispute remain largely unchanged, meaning that congestion and delays will be felt across the board.

The Real Cost to Consumers
The end consumer inevitably bears the brunt of these disruptions.
Increased costs from storage, rerouting, and missed sales are often passed down to consumers through higher prices.
For instance, during the 2014-2015 port slowdown, import prices for consumer goods rose by an average of 0.5%, with some sectors experiencing price increases of up to 3%.

The upcoming strike could see similar price hikes, exacerbated by panic buying and stockpiling as businesses scramble to secure goods.
For small and medium enterprises (SMEs), which rely on timely deliveries, the impact could be devastating, affecting their cash flow and operational stability.
Tips for Preparing Your Business for Potential Port Strikes
- Be Ready to Improvise: Stay flexible and be prepared to adapt your strategies as the situation evolves. Quick improvisation can help you navigate unforeseen challenges.
- Keep Cargo on the Coast: Position your cargo at coastal ports to maintain greater control and flexibility. This allows for easier transloading or trucking if delays occur.
- Control Your Cargo: Ensuring your cargo remains within your control provides more options for managing disruptions effectively.
- Prioritize Communication: Over-communicate with clients about potential delays. Clear and frequent updates can help manage expectations and reduce the impact of disruptions.
- Prioritize Shipments: Identify and prioritize critical shipments to minimize the effects of delays on your most important deliveries.
Navigating the Storm Together With Texas International Freight
As the situation unfolds, it is clear that the potential for disruption is significant.
The ILA and the United States Maritime Alliance (USMX) continue to engage in public sparring, with little sign of a resolution.
The Biden administration, meanwhile, has indicated that it is not considering invoking the Taft-Hartley Act to prevent a strike, leaving businesses in a precarious position.
While the situation may seem bleak, it is important to remember that everyone is in the same boat.
The key to navigating this storm is to stay the course, maintain open communication, and work together to mitigate the impact.
Contact Texas International Freight for any questions and discover how we can aid in your shipping requirements.