ILA Strike Ends: Top Priorities for Shippers Moving Forward
The end of the International Longshoremen’s Association (ILA) strike brings colossal impact on the shipping industry. Several sources say that the shippers are coming across a hard phase as they face a gamut of hardships such as freight restraints and cargo backlogs.
After weeks of negotiations, the ILA and port authorities signed an agreement that addresses several concerns including job security, wages, and safety conditions. The strike led to disrupted supply chains and escalated the shipping costs. Representing so many longshore workers, the ILA initiated the strike for improving working conditions and a fair wage increase that affects the rising cost of living.
Vespucci Maritime Partner and CEO Lars Jensen mentioned in an LinkedIn post that there is a likelihood of getting port operations back on the right track in the month of October. As per his statement, a temporary slowdown is expected in Europe to North America.
Before the strike started, various shippers shifted cargo to the West Coast and frontloaded goods to reduce the possibility of any kind of impact on the functioning of their supply chain tasks. The ITS Logistics said that the high inland point intermodal volumes resulted in the constraints of West Coast rail operations.
Several experts shared their thoughts about what shippers are currently facing and what initiatives they have to take for handling their freight and supply chains in a better way.
Nick Vyas said that automation is one of the most cumbersome tasks. With a decline in technological advancements in port operations, there is a risk of less efficiency in operations. This can have a massive impact on a multitude of companies that onshore their operations.
Mia said that the disruption can affect the operation handling process in the long run. However, the truckload capacity remains consistent and available across impacted areas. As the market progresses, the role of expedited LCL and air freight services will be more crucial than ever before.
Richie Daigle stated that with more and more complexities likely to arise in the future due to disruption, things will take a long time to get back to normal. The new plan should focus on building trusted relationships and improving the overall tracking process.
Angel stated that irrespective of commodity, route, and mode, the right planning should be prioritized. With the best backup planning, minimizing disruptions to your clients can be made possible. As the strike has been suspended till January 2025, such important points should be taken into consideration.