ARTICLE
ECA member firm Gilbane Co. recently released a supply chain memo, alerting readers to a potential strike by the International Longshoremen’s Association (ILA). A strike may significantly delay delivery dates and increase prices for equipment, materials, and supplies. The failure to reach a new agreement is expected to result in a strike of up to 45,000 dockworkers on October 1st, potentially impacting up to three dozen ports across the East Coast and Gulf of Mexico. Key points from the alert include: U.S. East Coast and Gulf Coast ports handle 43% of U.S. imports and move billions of dollars' worth of goods each month. ILA leadership described the Association’s relationship with port leaders as “pretty fragile.” They will “most definitely hit the streets on Oct. 1 if we don’t get the kind of contract we deserve.” A one-week strike in October is projected to create a backlog that would take four to six weeks to clear. A two-week strike would extend the recovery period into 2025. Delays could be compounded by the recent four-day Canadian railroad strike, which is expected to take weeks to recover. To make a long story short: it is important to discuss all options with your project stakeholders if you have critical equipment or material that may be impacted in the last quarter of 2024. Identifying and communicating supply chain requirements and potential disruptions is critical to developing effective contingency plans.
ECA member firm Gilbane Co. recently released a supply chain memo, alerting readers to a potential strike by the International Longshoremen’s Association (ILA). A strike may significantly delay delivery dates and increase prices for equipment, materials, and supplies. The failure to reach a new agreement is expected to result in a strike of up to 45,000 dockworkers on October 1st, potentially impacting up to three dozen ports across the East Coast and Gulf of Mexico.
Key points from the alert include:
To make a long story short: it is important to discuss all options with your project stakeholders if you have critical equipment or material that may be impacted in the last quarter of 2024. Identifying and communicating supply chain requirements and potential disruptions is critical to developing effective contingency plans.