Expert: Port strike on supply chain for peak holiday season will be ‘less severe’

The labor strikes at East Coast and Gulf Coast ports are generating considerable discussion, but their actual impact on the supply chain for the peak holiday season may be less severe than anticipated. Most holiday merchandise is already in the U.S., so while concerns about delays exist, many shipments for the holiday rush have already made it through.
 
The immediate impact will likely be felt by manufacturers reliant on these ports for parts in sectors like automotive and industrial production. Consumers may experience shortages of perishable goods, such as bananas, with a fifth of the U.S. banana supply coming through these ports, potentially driving up prices.
 
What we will see tested are the resiliency plans manufacturers implemented post-pandemic. Those who shifted from a just-in-time to a just-in-case model have stockpiled parts to mitigate risks. However, companies that didn’t plan ahead may struggle to recover quickly. Anticipating disruptions, some manufacturers are already shifting trade routes or adjusting supplier volumes.
 
With this strike underway, we can expect a surge in truckload capacity, particularly in the Gulf Coast and East Coast, which may temporarily lower rates as drivers adjust to meet demand. Additionally, significant disruptions to agricultural exports could impact both domestic and global markets, affecting supply and prices.
 
Ultimately, manufacturers need to adopt long-term strategies to navigate these disruptions. While short-term solutions like air freight provide immediate relief, they are costly and unsustainable. Companies that proactively adjusted trade routes or increased order quantities to account for delays are best positioned to maintain smooth supply chains.
 
Spencer Shute is VP at at Proxima, a global procurement and supply chain consultancy.