In recent months, both the U.S.-based C.H. Robinson and the German Hellmann Worldwide Logistics have been actively supporting customers as they prepare for the potential disruption caused by a potential labour dispute on the US East Coast.
The source of concern, as reported in a recent article by ShippingWatch, stems from a looming dispute between the International Longshoremen’s Association (ILA) union and the United States Maritime Alliance (USMX), representing the employers. Tensions have been mounting over the collective bargaining agreement, which is set to expire on September 30th, leaving the possibility of a strike and major delays in shipping if no resolution is reached.
The effects of this uncertainty have already been felt, with a noticeable shift in shipping patterns over the summer. Helge Neumann-Lezius, global head of FCL at Hellmann, told ShippingWatch that the company has seen the West Coast become a more popular shipping route due to its perceived stability, although this increased demand has led to an increase in shipping costs.
Similarly, C.H. Robinson has observed that businesses are divided in their approach to the potential strike. Some are waiting to see if the strike materialises, while others are developing contingency plans to minimise its impact on their operations.
ShippingWatch has also contacted Mia Ginter, director of North American Ocean for C.H. Robinson, who stressed that industries such as automotive and pharmaceuticals are especially vulnerable, as they rely on time-sensitive shipments. A one-week strike could lead to a month of delays, affecting not just freight but the broader economy.
Smaller businesses, in particular, have expressed the most concern, ShippingWatch reports, and many have started diverting shipments to the West Coast to avoid potential disruptions on the East Coast.
Both freight forwarders believe that no industry or region will be immune to the ripple effects of such a major disruption. The complex nature of strike alerts and the unpredictable factors surrounding labour disputes have made it difficult for companies to plan long-term strategies, forcing them to make reactive decisions in the short term.
While concerns remain high, there is still hope for a resolution. ShippingWatch refers to recent strikes in other countries, such as Canada and India, that were narrowly averted through last-minute negotiations, and both logistics companies hope for a similar outcome in the U.S.
Despite the high stakes, both companies maintain some optimism that a solution will be found before the strike begins, as none of the parties involved would benefit from a prolonged disruption to port operations.