Shippers' Strategies for East and Gulf 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 for wholesale goods 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 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 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.

International Terminal Hapag-Lloyd

The shipping giant has said it is closely monitoring the strike situation and will keep customers involved as developments unfold.

Andreas

The German chainsaw manufacturer Andreas Stihl Stihl AG & Co told Reuters it is also developing 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 Brands

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.

International/National Association of Manufacturers

International NAM CEO Jay Timmons said a strike would throw manufacturing supply chains throughout the U.S. into disarray. "Billions of dollars of goods - from food to vehicles to electronics - rely on ers access to the East and Gulf Coast ports," Timmons said on Monday.