Starting on October 1, 2024, the US East and Gulf Coasts were hit by a massive strike – it’s the first major instance of dock worker labour unrest in almost 50 years. With nearly 50,000 members of the International Longshoremen’s Association (ILA) walking off their jobs, around 36 ports from Maine to Texas have been severely impacted.
These include major hubs like Houston, Baltimore, and the Port of New York and New Jersey. The industrial action stems from a failure to reach a new agreement between the ILA and the United States Maritime Alliance (USMX) over key issues such as wages and automation.
The disruption hasn’t just been felt in the USA.
A Global Impact
This disruption caused by the ILA’s industrial action is taking place occurring against a backdrop of multiple global logistical challenges, including conflict in the Red Sea, the Panama Canal drought, and the Baltimore bridge collapse. With more than 40% of total containerised goods entering the US through East and Gulf Coast ports, companies that rely on these ports face a potential logistical nightmare as bottlenecks worsen, and critical goods become trapped at ports.
The impact of the US port strikes extends far beyond the country’s shores. The slowdown in operations across major US ports causes knock-on effects globally, leading to vessel congestion and delays in subsequent journeys. Ports like Baltimore, which specialises in handling automobiles, and Philadelphia, a key port for fruit and vegetable imports, are already feeling the pressure. Perishable goods, like bananas, are reportedly stuck, facing potential spoilage. The longer the strike goes on, the worse the disruption gets.
Businesses that rely on time-sensitive deliveries or just-in-time inventory management are especially vulnerable to these delays. Companies that have tried to shift operations to the West Coast are experiencing increased logistics costs, which pushes up the price charged to the end consumer.
A Possible Solution: Air Cargo Charters
Given the uncertainty surrounding maritime logistics, air cargo charters offer a viable and increasingly attractive alternative. Air cargo charters provide bespoke transport solutions that can bypass congested ports and time-consuming sea routes, delivering goods directly to where they are needed, often in a fraction of the time.
Key advantages of air cargo charters include:
- Speed and Reliability: Air freight is considerably faster than sea freight, making it ideal for time-sensitive goods such as perishable items, high-value products, and urgent spare parts.
- Flexibility: Unlike scheduled cargo services, air charters allow businesses to tailor flights to their requirements, including choosing the aircraft, destination, and delivery time.
- Global Access: Air cargo can reach destinations that are either inaccessible by sea or where sea routes are severely delayed. This is particularly crucial during port strikes or other maritime disruptions.
In the context of the US port strikes, air cargo charters present a valuable solution for businesses facing mounting delays and spiralling logistics costs. Rather than waiting for seaports to clear, companies can maintain their supply chains by turning to air transport.
How Can Businesses Prepare for Potential Future Disruptions?
The current US port strikes are a stark reminder of the vulnerabilities in global supply chains, particularly for businesses heavily reliant on maritime transport. To mitigate the impact of future disruptions, businesses can take several proactive measures:
Diversifying Logistics Channels: Companies should avoid relying solely on one mode of transport or a single port. Diversifying through a mix of sea, air, and land transport can provide alternative routes when one channel is disrupted.
Building Inventory Buffers: Stockpiling critical goods in advance, especially ahead of known risks like labour disputes, can help cushion the impact of supply chain delays.
Partnering with Air Cargo Providers: Establishing relationships with air cargo charter companies can allow businesses to quickly pivot to air freight when maritime channels become unreliable. Pre-negotiated contracts with air freight companies can ensure businesses have access to alternative transport solutions during times of crisis.
How Airmacs Can Help
As an independent provider of air transport solutions, Airmacs is ready to help businesses navigate supply chain crises like the ongoing US port strikes. With extensive experience in delivering tailored air cargo solutions, Airmacs offers a flexible, responsive service that ensures businesses can keep goods moving, even when traditional shipping methods falter.
Airmacs’ bespoke approach means we can scale up or down based on the volume and urgency of the shipments, offering a level of agility that is unmatched by traditional shipping methods. Whether companies require fast transport for perishable goods, urgent components, or high-value products, Airmacs provides the necessary expertise and resources to keep their supply chains on the move.
Contact us to find out how we can help your business.
