How to Prepare for the Potential East Coast Port Strike on October 1st
With the looming threat of a strike at East Coast and Gulf Coast ports on October 1st, businesses relying on smooth cargo movement should already be preparing for it.
Even if your goods aren't traveling through these ports, the ripple effects could be widespread, impacting supply chains nationwide. A strike of this magnitude affects not just the ports in question but can create delays and price surges in unexpected places. Here's what you need to know to safeguard your business and prepare for the possible disruptions.
How to Prepare for a Potential Port Strike:
Whether your cargo is moving through the East Coast, Gulf Coast, or even the West Coast, here are key strategies to minimize the impact of a potential strike.
1. Monitor Cargo Movement Closely
This is a time to be proactive. Every business with cargo in transit should keep a close eye on its movement, regardless of the port of entry. Just because the strike is likely to happen on the East and Gulf Coast ports doesn't mean West Coast or inland supply chains won't feel the pressure.
We are already seeing a week-long backlog in rail movement in Los Angeles, and congestion could worsen if shippers divert freight away from affected regions.
2. Consider Pre-Pulls and Yard Storage
Pre-pulling containers to off-dock storage facilities before the strike date could save you significant time and money. Taking advantage of available yard storage now can help keep your supply chain moving if the ports shut down.
3. Leverage Transloading and Quick Unloading
By transloading goods closer to their final destination, businesses can avoid port congestion and reduce the risk of delayed deliveries. Quick unloading times, especially at warehouses, can help you return containers faster and avoid extra fees, such as demurrage and per diem charges.
What About Per Diem Fees?
Historically, per diem charges—a fee paid for not returning a container on time—have become a major cost during strikes. While some carriers may invoke Force Majeure clauses (which limit liability in extraordinary circumstances), it doesn't always mean you're off the hook. Steamship lines (SSLs) may still require you to return containers to off-dock depots, so it's critical to clarify your terms and conditions with carriers ahead of time.
What to Expect During the Strike?
When labor strikes hit, businesses should anticipate and plan for several potential scenarios:
👉 Stop-Offs: Your cargo could experience more frequent stop-offs as trucks and railways become inundated with containers and schedules get adjusted.
👉 Higher Shipping Costs: Prices are almost certain to increase as demand for alternative routes, expedited services, and available capacity skyrockets.
👉 Insurance Claims: If your cargo is delayed or damaged due to the strike, filing a claim under your cargo insurance might become necessary. Ensure your insurance policy is up to date and covers strike-related delays or disruptions.
West Coast Rail Delays: A Growing Concern
While all eyes are on the East and Gulf Coasts, businesses should pay attention to the mounting issues on the West Coast. Rail services in Los Angeles are already trailing behind by about a week, and a strike on the opposite coast could push more cargo toward these ports, worsening the delays. With potentially congested coasts, planning alternate routes and transport methods is vital to keeping your supply chain flowing.
Risk Management
Strikes can cause cascading effects across global supply chains. The best way to mitigate risk is to be prepared:
📌 Stay informed,
📌 Explore flexible logistics options like pre-pulls, and
📌 Pivot your operations as needed.
Cargo delays, storage issues, and rising costs are all factors to consider. Acting now will help ensure you're ready to weather the storm, whatever happens on October 1st.
Taking proactive steps and preparing for multiple outcomes will protect your business and help ensure your cargo reaches its destination without undue disruption.
The BlueCargo Team
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