Port Strike Begins

As expected, or perhaps feared, a port strike affecting U.S. ports on the East and Gulf coasts began this week. While the duration of the strike is unknown, what is known is that this labor action could have profound effects on supply chains, including those for the printing industry. This is a developing story.

The demands of port workers, though their labor union, the International Longshoreman’s Association, include a reported 70% increase in wages, as well as job protection as a rising tide of automation begins to affect port jobs.

According to the Washington Post, the U.S. Maritime Alliance, which represents port companies, said negotiators traded proposals in the final hours leading up to the October 1 strike date, and that it was offering 50% raises.

A National Public Radio report said that despite pressure from more than 170 industry groups (including PRINTING United Alliance) warning of the potential for strong negative impacts on the U.S. economy, the Biden administration is committed to letting collective bargaining run its course, as opposed to intervening. That letter, according to CNN, stated, “The last thing the supply chain, companies, and employees … need is a strike or an ongoing labor negotiation.

A Counselor PromoGram released today by ASI said that by one estimate, the strike will cost the U.S. economy $540 million per day. That report also quoted Jing Rong, vice president of supply chain and sustainability at Counselor Top 40 supplier HPG. Rong said, “Anything less than two weeks should not cause a pricing change, but if it continues longer, we’ll have a bigger issue on our hands.” That bigger issue could include price spikes such as those witnessed during COVID-19, when container and vessel shortages suppressed inventories.

About the strike, Stephanie Buka, government affairs coordinator at PRINTING United Alliance, said,  “PRINTING United Alliance joined a coalition letter, along with 226 like-minded organizations, urging President Biden to use the authority of his office to bring an end to the strike at U.S. East and Gulf Coast ports. We are hopeful that the parties will return to the table and come to an agreement to ensure a reliable, efficient supply chain for the printing industry and many other industries.”

As stated in an earlier article, when the current strike was a looming possibility, potential strategies for navigating supply chain issues can include working with domestic manufacturers of products needed, or seeking relationships with suppliers or manufacturers less vulnerable to U.S. port shutdowns. Also, increasing inventory now in hopes it will bridge and any disruption is an option, though that includes a higher outlay during a time when materials costs are rising.