The possibility of strikes in the US East Coast and Gulf Coast Ports combined with other challenges like natural disasters is set to create an unprecedented operational environment in the coming period characterised by diverse challenges and volatility. As a result, supply chains should prepare for a possibly heavy impact also because of the approaching peak shipping season.

Container xChange reports that the International Longshoremen’s Association (ILA), representing several thousands of dockworkers on the East and Gulf Coasts, faces a contract expiration on 30 September. Negotiations with the United States Maritime Alliance Ltd. (USMX) are not promising, making a strike increasingly likely. Such an event could impact nearly half of the US maritime trade.

Companies like Maersk have warned about the potential for severe disruptions, noting that even a brief strike could lead to weeks of delays due to backlogs. The unpredictable strike duration aggravates the uncertainty—it could be resolved quickly or drag on for months, resembling the prolonged West Coast strike from last year.

Should these strikes occur, East and Gulf Coast ports will likely experience significant congestion, leading to delays. Traders may face increased costs from extended delays and potential shortages of key equipment. Some businesses might be forced to reroute shipments through alternative ports, adding more complexity and costs to their logistics, stresses Container xChange.