A looming strike along the US east and Gulf coasts threatens to unravel global container supply chains, with significant ramifications for businesses far beyond American shores. Experts are warning that even a short-lived strike could ripple through logistics networks well into 2025, leaving major importers and exporters scrambling to adjust.
Peter Sand, chief analyst at Xeneta, highlighted the critical nature of the issue. “There are ships on the ocean right now carrying billions of dollars of cargo, heading to ports on the US east and Gulf coasts,” he said, warning of congestion at anchorages that could send shockwaves across international trade routes.
For logistics service providers (LSPs) and beneficial cargo owners (BCOs), the risk is not just in delays but in lost opportunities, missed connections, and unanticipated costs. Many vessels, such as the Monte Tamaro, OOCL Guangzhou, and Seaboard Pioneer, are scheduled to arrive at key ports, including Port Elizabeth in New Jersey, on or just after the 1 October strike deadline. A delay for these ships could mean extensive rerouting or a painful wait offshore.
According to the latest analysis from eeSea’s liner schedules, a total of 39 container ships are expected to arrive at the Port of New York and New Jersey in Week 40. While 28 remain on schedule, 11 are already delayed—underscoring the fragile state of the current logistics environment.
“This is not just a local problem,” Sand continued, “The knock-on effect will be felt across global schedules, particularly with vessels heading back to the Far East. A strike lasting even a single week could push disruptions into January, delaying ships bound for the US from Asia.”
Given the complexity of global supply chains, real-time data insights are no longer a luxury but a necessity. For BCOs and LSPs navigating these challenging waters, tools providing real-time visibility into port conditions, rerouting options, and alternative supplier networks could be the difference between absorbing the shock and sustaining severe operational impacts.
Visibility software can empower decision-makers to pre-emptively divert shipments or optimise their logistics strategies, mitigating the economic fallout. As John McCown, a noted maritime economist, pointed out, the US port system handles nearly $194 billion in goods each month, with the east and Gulf coasts responsible for more than half of that. Given that 16% of the global container fleet operates in this region, the scale of disruption is almost unimaginable.
While a Maine-to-Texas strike could have devastating consequences, some believe it’s unlikely to reach that point. McCown speculates that the economic risks are so severe that President Biden may be forced to invoke the Taft-Hartley Act, requiring an end to the strike. Others anticipate selective action targeting specific ports, which could still be highly disruptive but more contained.
Government intervention, says Sand, could be critical to prevent a widespread shutdown. “Closing the east and Gulf coasts would be toxic for supply chains,” he said, arguing that it’s imperative to find a resolution before severe damage is done to the economy.
But for LSPs and BCOs, waiting for government action may not be an option. With advanced visibility tools, they can make swift, business-critical decisions to counteract the looming strike’s impact. As the world of logistics becomes increasingly complex, embracing real-time data insights is the only way forward.