Logistics Management Magazine’s November issue provided key updates on the recent ILA strike and its effects on U.S. supply chains. The report highlights ongoing congestion and potential long-term disruptions that could impact businesses nationwide. Below is a summary of what shippers need to know as they prepare for possible future delays.
Prepare for More Disruptions
Shippers are advised to prepare for further potential disruptions. Moody’s supply chain strategy expert, John Donigian, emphasizes that smaller businesses relying on just-in-time shipments are especially vulnerable. Flexibility and contingency planning, including route diversification, will be key strategies as the industry navigates this period of uncertainty.
Lingering Congestion Issues
A tentative agreement was reached between the ILA and USMX after a three-day strike, bringing a temporary sense of relief to the U.S. supply chain. However, the strike has left lingering congestion issues across major U.S. ports, with delays at popular contingency routes like the West Coast and Canadian ports, where dwell times have stretched up to 30 days. Rail delays are also expected to continue, potentially impacting supply chains for months.
Backlog Recovery
Experts report that each day of port disruption typically results in one week of backlog recovery, suggesting a three-week timeline to restore normal operations. But with the agreement set to expire in mid-January, shippers may soon face similar challenges. This timing could prove particularly disruptive during critical shipping cycles in early 2025, including holiday inventory replenishment, spring positioning, and preparations for the Chinese New Year.
