As widely reported, if workers at East and Gulf Coast ports strike on Oct. 1, manufacturing supply chains throughout the U.S. will be severely impacted. The National Association of Manufacturers (NAM) published a very insightful, interactive map of the ports that will be potentially impacted and some interesting import/export facts for many of them. Check it out here:
More than 68% of all containerized exports and more than 56% of containerized imports flow through East and Gulf Coast ports, representing an average daily trade value of more than $2.1 billion.
They handle more than 91% of containerized imports and 69% of containerized exports of pharmaceutical products.
They also process more than 76% of containerized vehicle exports and more than 54% of containerized vehicle imports.
For air and spacecraft, more than 77% of containerized exports and more than 51% of containerized imports go through these ports.
To prepare for a potential labor strike by the International Longshoremen’s Association (ILA) on the Gulf Coast and East Coast, importers and exporters can consider several contingency plans:
Reroute Cargo: Explore alternative shipping routes. Ports on the U.S. West Coast, Canada, and Mexico can serve as viable alternatives. For example, cargo can be diverted to ports like Los Angeles, Long Beach, or Vancouver.
Multi-Coastal Transportation Network: Establish a network that includes multiple coastal gateways. This can involve setting up transload operations or smaller volume operations that can be scaled up if needed.
Extended Gate Hours: Take advantage of ports extending their gate hours to process as much cargo as possible before any potential strike. Ports like New York, New Jersey, and Savannah are offering extended weekend hours.
Airfreight Options: For time-sensitive shipments, consider using airfreight, although it comes at a higher cost and with capacity concerns.
Communication with Ports and Carriers: Stay in close contact with ports and carriers for the latest updates and advisories. Many ports are sharing daily updates about their contingency plans.
Inventory Management: Increase inventory levels of critical goods to buffer against potential delays. This is especially important for industries relying on just-in-time inventory models.
Legal and Contractual Preparations: Review contracts and legal agreements to understand the implications of delays and disruptions. Ensure there are clauses that cover force majeure events like strikes.
Working with an experienced capable freight forwarder, like Logistics Plus, importers and exporters can implement the above strategies and better navigate the potential disruptions caused by a labor strike.
Chris Dennis, Managing Director for Logistics Plus (LP) Canada, was featured on the Business Spotlight program, which is produced in partnership with WPSE Money Radio. Business Spotlight is a monthly 30-minute program that airs regionally and streams globally.
In this month’s Logistics Plus segment, Chris discusses his background, the solutions offered by the Canada team, collaborating with the team at our Global Headquarters in Erie, navigating different rules and regulations, and more.
You can listen to a replay of the interview on the Logistics Plus Podcasts page or by clicking below on our LP Radio channel on Spotify.
The Logistics Plus (LP) Aero team successfully completed an urgent air charter project from St. John’s, Canada, to Georgetown, Guyana, on September 8th, 2024. The team was tasked with transporting oil production equipment for a key client in the oil industry. The air charter was swiftly organized using an AN-12 aircraft, chosen for its optimal capacity considering the cargo’s overall dimensions (533x255x186 CM) and weight (4250 kg) while also being the most cost-effective solution.
Despite the challenging weather conditions, the LP Aero™ team meticulously planned the operation, ensuring the cargo was delivered safely and on schedule. Photos from this project can be seen below.
Logistics Plus Renews Its U.S. EPA SmartWay Transport® Partnership for a 14th Year
Logistics Plus ranks among the top SmartWay Partners in carbon emissions per mile.
ERIE, PA (September 10, 2024) – Logistics Plus, Inc., a global leader in transportation, logistics, and supply chain solutions, is proud to announce that, for a fourteenth straight year, it has submitted and received approval for its current data submission to the SmartWay Transport Partnership, an innovative collaboration between the U.S. Environmental Protection Agency (EPA) and the industry.
Since 2004, SmartWay has helped partners avoid emitting 153 million metric tons of CO2, 2.7 million short tons of NOx, and 112,000 short tons of PM, which helps protect the environment and keep Americans healthy. Based on the most current 2023 rankings, Logistics Plus ranks among the top partners for the least amount of CO2 emission grams per mile among the 4,531 active SmartWay partners.
Since 2004, SmartWay has helped its 4,000 partners save 357 million barrels of oil- equivalent to eliminating annual electricity use in over 23 million homes. By helping America’s freight industry reduce its dependence on foreign fuel, we can invest more dollars at home and reduce our national trade deficit. For information about the SmartWay Transport Partnership, visit http://www.epa.gov/smartway.
About Logistics Plus, Inc.
Logistics Plus, Inc. (LP) is a 21st-century logistics company and a leading worldwide provider of transportation, warehousing, fulfillment, global logistics, business intelligence, technology, and supply chain solutions. LP works in the background to help businesses manage their supply chains in an ever-changing world. Founded in 1996, today LP has annual global sales of over $600M with more than 1,200 employees located in 50+ countries worldwide. LP is recognized as one of the fastest-growing privately-owned logistics companies, a top 3PL provider, a top 100 logistics company, a top freight brokerage and warehousing provider, and a great place to work. With a Passion For Excellence™, its employees put the PLUS in LOGISTICS by doing the big things properly, plus the countless little things that together ensure complete customer satisfaction and success.
Logistics Plus Customs Brokerage Manager Gretchen Blough appeared on NPR’s Marketplace summer series (9/6/24) titled “My Analog Life” to comment on how technology has changed people’s jobs. Gretchen described how she was required to use fax machines to scan documents ten years ago and the challenges that came with it.
Marketplace® is a nonprofit news organization on a mission to raise the economic intelligence of the country. For more than 30 years, they have helped people become smarter about the economic forces that touch their daily lives through the unorthodox story, the casual conversation, and the unexpected angle on the news.
The Logistics Plus (LP) Thailand team successfully lifted and transported a new catamaran in Thailand. The catamaran was first lifted from the manufacturing facility using a 200-ton crane before loading it onto a hydraulic trailer for transportation. The catamaran then traveled 130 kilometers inland with only centimeters of space to spare. In total, the catamaran weighed 12 tons and measured 18 x 8.5 x 4.5 meters.