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How to Navigate Potential Strikes at U.S. Ports

  • by Daina Mueller
  • Wednesday, September 18, 2024 12:14:11 PM

The prospect of upcoming labor strikes at U.S. ports reinforces the significance of strikes for household goods and relocating employees. Following are details on the potential U.S. port strike, some options to consider, as well as long-term strategies for future events.

Potential U.S. Port Strike Looming 

The International Longshoremen’s Association (ILA), which represents approximately 45,000 workers, has threatened to strike on October 1, 2024, if a new contract is not reached. 

Key issues for negotiations include the use of automated systems like Auto Gate and the increasing presence of IT personnel on marine terminals. The ILA has stated they will not extend the current contract or accept external intervention, including from the Biden Administration.

This potential strike could impact several major ports along the East and Gulf Coasts, including Charleston, Houston, Miami, Mobile, New Jersey, New York, Norfolk and, Savannah.

Items to consider in the case of a port strike: 

  • Use air freight for essential items while waiting for the household goods shipment to arrive.
  • Extend temporary housing terms for relocating employees. 
  • Hold goods in temporary storage at an origin or destination warehouse to prevent higher costs at the port such as chassis, detention/demurrage or port storage.
  • Use alternative ports – for example, the West Coast of the U.S. should still be operating as an alternative option, but if the strike is extended these ports will quickly become overwhelmed and congested. Please note that Canadian or Mexican ports are not an option for household goods shipments with an ultimate destination in the U.S. due to customs clearance restrictions. 

Sirva’s global household goods operations team flags potential strikes, and are alerted regarding any shipment being sent from or arriving to impacted ports so steps can be taken to minimize expense and disruption.   

The Potential Impact of Port Strikes on Relocation Shipments

Port strikes can delay the shipment of household goods, complicating relocation schedules for employees and their families. Key concerns include:

  • Shipping delays for household goods: When port operations slow or halt, employees' household belongings can get stuck in transit, causing delays in settling into new homes.
  • Higher transportation costs: To avoid port disruptions, shipping providers may need to reroute goods via more expensive options like air freight, leading to budget increases.
  • Logistical challenges: Finding alternative transportation methods quickly enough to stay on schedule can be a logistical nightmare without a reliable partner in place.
 

How to Prepare: Steps for Managing Household Goods Shipments

Following are a few strategies to minimize stress for employees and mobility teams:

  • Diversify your shipping routes and methods.

    For critical moves, consider alternate ports or even a combination of sea, air, and land transportation. Your relocation partner can offer a variety of shipping methods, allowing you to reroute household goods to avoid port bottlenecks.

  • Build flexibility into your relocation timelines.

    Encourage employees and internal teams to allow for flexibility in their relocation schedules, especially for household goods delivery. By building in a buffer period, you can account for potential delays while ensuring employees have essential items during the transition.

  • Establish temporary storage solutions.

    In the event of delays, having temporary storage facilities in place at origin and destination locations can keep household goods safe and ready for quick action when the disruption clears. 

  • Communicate proactively with your employees.

    Keep employees informed of potential delays, offer updates on shipment statuses, and provide clear alternatives in case of disruptions

  • Work with a trusted relocation partner.

    Sirva has extensive experience in managing complex relocations, including working with suppliers to reroute shipments and adapt to logistical challenges in real-time. With our global network, we can offer multiple routes and solutions tailored to your specific needs.

 

Port strikes may be beyond your control, but with the right planning and support, you can ensure the relocation of employees’ household goods remains on track. By diversifying shipping routes, building flexibility into timelines, and working with a trusted partner like Sirva, you can mitigate the impact of port disruptions on your relocation programs.

 

Smart. Helpful. Human. Responsible.