How to Prepare for a Strike and Its Impacts: A Guide for Supply Chain Leaders

Port strikes can severely disrupt businesses that rely on ocean and air freight, leading to delayed shipments, increased costs, and logistical nightmares. For companies importing between 10 and 500 containers annually, preparing for these disruptions is critical.

Whether it’s a longshoremen strike or dockworker labor unrest, a proactive strategy will keep your supply chain resilient.

Assess Your Supply Chain Vulnerabilities

Identify the weak points in your supply chain that would be most affected by a strike. Consider your dependence on specific ports, routes, or carriers, and calculate the financial risks associated with delays.

Conduct scenario planning to simulate potential impacts of delayed shipments. Work with your logistics team to explore alternative sources or routes that could minimize disruptions if a port strike occurs. Understanding these vulnerabilities will help you create effective contingency plans.

Diversify Shipping Routes and Methods

One of the best ways to protect your supply chain is to diversify your shipping routes and methods. Avoid relying too heavily on a single port or transportation method, as this could increase your exposure to delays during a strike.

For example, air freight can be a useful alternative to ocean freight when port strikes loom. While it’s more expensive, it can help avoid costly stockouts. Additionally, consider smaller or less congested ports as potential alternatives to major hubs that may be impacted by strikes.

By diversifying, you spread your logistics risk, ensuring that a single disruption won’t halt your entire supply chain.

Build Strong Partnerships with Key Logistics Providers

Having the right logistics partner is essential during uncertain times. A trusted provider like DGL offers deep expertise in navigating disruptions, whether from strikes or other causes. DGL can help you secure alternative shipping routes, expedite customs processes, and provide real-time updates from ports worldwide.

Establishing a strong partnership and open communication with your logistics provider can help you stay flexible and responsive to any disruption. Don’t wait until a strike is imminent—work with your provider now to prepare for future challenges.

Stock Up on Critical Inventory

When a strike seems likely, increasing inventory can help protect your supply chain. By placing additional orders or advancing shipments, you can stock up on essential goods before port closures or delays occur.

For companies importing 10 to 500 containers annually, even a small delay can impact operations significantly. Building a buffer of critical stock can help mitigate the risk of stockouts, production delays, or missed customer deliveries.

Monitor Labor Negotiations Closely

Keep a close watch on labor negotiations between port operators and dockworker unions, especially on the East, West, and Gulf Coasts. Strikes are usually preceded by warning signs—monitoring these talks gives you a chance to act before disruptions begin.

Work closely with your logistics provider to stay informed on the latest developments and be prepared to implement contingency plans before a strike hits. Proactive adjustments can help you secure alternative routes or transportation methods before the rush.

Prepare for Long-Term Disruptions

Even a short strike can have long-term ripple effects throughout the supply chain. A week-long strike could cause delays that last for months, affecting inbound shipments, trucking schedules, and rail connections.

Prepare your supply chain for extended disruptions by developing a long-term contingency plan. Be ready to reroute shipments, delay non-essential orders, and absorb higher transportation costs in case of sustained delays.

Conclusion

Port strikes, such as longshoremen strikes, are a significant risk to global supply chains. By assessing vulnerabilities, diversifying shipping routes, partnering with experienced logistics providers like DGL, and staying informed on labor developments, companies can minimize the impacts of strikes and ensure continuity.

DGL is here to help you navigate these disruptions and keep your supply chain running smoothly. Whether it’s preparing for a strike or dealing with one in progress, DGL offers the expertise and network you need to stay resilient. Contact us today to learn more about how we can support your supply chain strategy.

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