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Implications Of USA’s Labor Strikes On Supply Chains 

Christian Roeloffs, co-founder and CEO of Container xChange shares his views on volatile market for container traders and supply chains.

BY Realty Plus
Published - Saturday, 21 Sep, 2024
Implications Of USA’s Labor Strikes On Supply Chains 

In August 2024, U.S. container cargo imports surged by 12.9% year-over-year, with major ports handling nearly 2.5 million TEUs. While this reflects strong freight demand, it also intensifies concerns as labor strikes loom on October 1st. The possibility of strikes in US East Coast and Gulf Coast Port adds uncertainty for container shipping professionals doing business in the US,” shared

For container trading and leasing companies, these disruptions could lead to significant delays and port congestion, impacting equipment turnaround times. Companies should anticipate short-term spikes in demand for leased containers as retailers rush to secure goods ahead of potential disruptions, particularly for seasonal inventory and industrial shipments.

While the threat of strikes looms large, it’s important to note that U.S. inventories are currently strong due to the pulling forward of orders earlier this year to avoid existing disruptions. This stockpile will act as an essential buffer, mitigating the risk of container rates spiking dramatically due to the strikes. 

Additionally, with no significant signs of peak season demand strengthening, these strikes might not have as intense an impact as historically seen. However, the overall impact will largely depend on the duration of the strikes, with prolonged disruptions having the potential to intensify the implications for supply chains, leading to more pronounced bottlenecks and greater challenges in container availability.

Leasing rates may rise sharply as importers seek to secure containers amid potential delays. In this environment, traders will need to diversify their partner networks, sourcing strategies, and explore alternative ports to mitigate container shortages.

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