October 1, 2024
West Coast Ports Brace for Impact: How East Coast Strikes Are Creating Ripple Effects
Just when you thought the supply chain had seen it all – boom! Another twist. This time, it’s the East Coast dockworkers on strike, and now everyone’s looking to the West Coast for support. Supply chain disruption has been recurring in recent years – pandemics, trade wars, shipping container shortages, drought, and port strikes.
Let’s examine what’s happening and how we’re helping our clients keep their goods moving amidst the chaos. Spoiler alert: it involves avoiding rail delays, utilizing Canadian routes, and staying ahead of port congestion.
What’s Happening:
So, the East Coast port strike is in full swing, and now all eyes are on the West Coast. While LA and Long Beach may not have asked for the extra attention, here it is. Cargo that would typically land on the East Coast is making a detour westward, causing a surge in container traffic.
West Coast ports, always the troopers, are doing their best to handle the extra load, but let’s face it – they weren’t exactly sitting idle before this happened. The situation is heating up, and the question is whether these ports can take the pressure or if we’re headed for yet another logistical gridlock.
Who’s Involved:
On the West Coast, the stars of the show are the port authorities, shipping companies, and the industries counting on them to deliver everything from cars to coffee beans. The West Coast has always been a critical player in the global trade game, but now, with the East Coast on strike, they have an extra round to handle. Add in the pressure from the holiday season (because, yes, it’s that time already), and you’ve got a recipe for potential delays and headaches.
For retailers, automakers, and anyone relying on just-in-time deliveries, this surge is less of a surprise and more of an “Oh great, here we go again” moment. We’ve been through worse and are here to help keep the show on the road.
Why This Matters
Let’s face it- these port strikes are becoming the new plot twist in the supply chain drama. Just when you think things are getting back to normal, bam! The next big disruption hits. And while the East Coast may be dealing with its challenges, the West Coast is now picking up the slack, leading to longer wait times, fuller container yards, and a lot of juggling to ensure goods get where they need to go.
Delays could result in businesses, especially those in the automotive, electronics, and retail sectors, missing out on crucial sales during peak season.
How The Block Logistics is Turning Chaos into (Semi) Order:
- Canadian Routes for Midwest-bound Imports: We recommend shifting cargo through Canadian ports for clients whose destination is the Midwest. This helps avoid the expected surge of shipments into West Coast ports and reduces the risk of delays.
- Early Rail Termination: We anticipate delays of 15-60 days for any shipments on the rail, regardless of the port of arrival. To avoid detention and demurrage fees, consider terminating your rail shipments prior to arrival and rerouting them to maintain your supply chain’s flow.
- Direct Drayage and Transload Services: We offer direct drayage and transload services to bypass potential rail delays. This ensures your cargo can continue moving without getting caught up in rail backlogs.
- Port Surcharge Fees: Many carriers are implementing port surcharge fees due to increased demand and congestion. Ask us for more details on these fees and how they may impact your logistics costs.
If there’s one thing we’ve learned in the logistics game, disruption is the new normal. Having a trusted partner by your side means you never navigate the chaos alone. Whether it’s rerouting through Canada, terminating rail shipments early, or leveraging our direct drayage services, we’re here with the solutions and expertise to keep your supply chain moving. We handle the disruptions so you can focus on keeping your business on track.