According to experts, a strike scheduled for October 1 at ports along the US East Coast and in the Gulf of Mexico is looking increasingly probable. Representatives of the International Longshoremen’s Association (ILA) are demanding nearly an 80% wage increase over six years. If their negotiations with the United States Maritime Alliance do not produce results, the planned strike could disrupt the global supply chain. Carriers and consumers in Europe, including Poland, will also feel the impact of the protest. In 2023, the US was our country’s fourth-largest source of imports. Simultaneously, the US was the only non-European country in the top ten nations to which Poland exports the most goods.
Half of the busiest ports in North America are located on the US East Coast and in the Gulf of Mexico. States including Texas, Georgia, Louisiana, and Pennsylvania, which import the most goods from Poland, would be affected by the ports closure in the event of a strike.
“Freight forwarders shipping cargoes from Europe, Oceania, and Asia to the US will especially feel the effects of a strike. This, in turn, would disrupt the flow of goods in the US, Canada, and Mexico. As we’ve seen in the case of other disruptions in the global supply chain, this cascade would result in both extended transit times and additional costs, ranging from congestion charges to possible demurrage and detention charges,” explains Mia Ginter, Director of Maritime Transport in North America for C. H. Robinson.
While no industry would be immune to disruptions caused by a strike, some would be more affected than others. For those using a just-in-time model, such as the automotive and pharmaceutical sectors, even a two-day strike could significantly disrupt their operations. Just-in-time is a strategy that involves delivering raw materials, components, and products exactly when they are needed in the production or sales process, instead of storing them in warehouses. The aim of this strategy is to minimize storage-related costs and prevent waste of goods.
“Many automotive and motorcycle components are imported through the US East Coast, so the risk of production delays would be high. On the export side, shipments to Europe, Latin America, and the Indian subcontinent are mainly sent from the US East Coast, so exporters who rely on these trade routes may be more exposed to disruptions,” points out Mia Ginter.
The value of exports from Poland to the US reached $11.8 billion in 2023, while imports totaled $16.2 billion. The value of automotive parts exports, including those for motorcycles, amounted to $57.5 million in June 2024. Meanwhile, the third most frequently imported category of goods to Poland in June 2024 was chemical products, including vaccines.
Currently, freight forwarders have two ways of responding to a potential strike. They can wait it out and handle any disruptions as they come. The other option is to develop contingency plans now to mitigate the impact of a strike on the supply chain.
A shift to air transport will be a more expensive option than using alternative ports, but it will allow forwarders to transport goods faster. Forwarders considering air transport should keep in mind that passenger flights will be limited between the current busy summer holiday season and October.
It is possible that the US government will step in to help the dockers and the United States Maritime Alliance reach an agreement. President Biden’s administration has shown readiness to actively participate in labor negotiations.
According to experts from C. H. Robinson, a halt at ports on the US East Coast and Gulf of Mexico would have catastrophic consequences for economies around the world. Typically, a week’s disruption in a port can result in a month’s delay in cargo transit.
Source: https://managerplus.pl/porty-w-usa-na-krawedzi-strajku-polska-importuje-stamtad-towary-za-162-mld-dolarow-59796
