We’re dealing with a major strike at ports along the U.S. East and Gulf Coasts this week. The International Longshoremen’s Union, which represents 45,000 port workers in those areas, needed to reach a deal by Sept. 30 in order to avoid a labor stoppage. That deadline has now passed.
Once upon a time, news of a strike this big might have struck fear into the hearts of supply chain stakeholders around the world. After all, we’re talking about impacts on ports like New York/New Jersey, Boston, Philadelphia, Savannah, Charleston, Mobile, Houston, plus others. But, in a full circle moment, the challenges experienced and lessons learned from the worst of the COVID-19 pandemic have come back around as solutions for today’s disruptions.
The global supply chain is now more resilient than ever due to the cascade of issues it’s experienced in recent years, from the pandemic that started in 2020 to missile attacks in the Red Sea in 2024 (and everything in between). A labor stoppage isn’t ideal — but BCOs and LSPs now know how to deal with one.
This week’s exploration of headlines from across the supply chain landscape includes notes on the strike plus tips for mitigating risk and ideas for enhancing resilience. Continue reading to learn more, and reach out to us if you’re searching for a supply chain orchestration platform that can help you overcome disruptions.
What to Expect From the ILA Strike
Now that the strike is upon us, what should we expect? According to this CBS story, the strike will likely result in a “severely” hampered flow of goods worldwide, plus much higher shipping costs. Those higher shipping costs will be passed along to consumers, which could have a ripple effect in the United States, where inflation appears to be under control, and the Federal Reserve has just announced interest rate cuts.
There’s also the issue of how this strike may affect the holiday season. Goods started flowing into the United States earlier this peak season to avoid disruption. A strike of just weeks or even a few days could leave months of recovery in its wake, potentially affecting store shelves come the holiday season.
Investing in Supply Chain Resilience
One of the reasons the global supply chain is better positioned to deal with disruption is that organizations have invested serious money into building resilience. A survey conducted by R.R. Donnelley & Sons indicates that “93% of supply chain leaders are at least somewhat confident in their supply chain’s resilience against future disruptions, with the majority (66%) feeling very confident.”
The underlying factor in this survey of 300 decision-makers is that organizations have become proactive in building resilience. Since the days of being caught flat-footed by the emergence of a pandemic, organizations are now focused on real-time visibility, predictive analytics, demand forecasting, responsiveness in fulfillment, increased sustainability, mitigating costs, and meeting customer demands. The pandemic prepared the global supply chain for future disruptions in many ways.
What’s the benefit of resilience? Everything from better customer experiences to reduced supply chain fragmentation. In the end, efforts to build resilience are worth it — especially when disruptions strike unexpectedly.
Now is the Time to Mitigate Supply Chain Risk
While the majority of the global supply chain has focused on building resilience, there are always stragglers who have not taken action. SupplyChainBrain warns that now is the time to mitigate risk. This is because “traditional supply chain risk-management strategies are based on limited and static sources of insight,” and teams now need a “single source of truth” so that they understand the “most important risk factors to consider.”
At Cargologik, we believe the concept of a single source of truth is essential for supply chain collaboration and orchestration, which is why we designed our platform to serve as the single source of truth that today’s BCOs and LSPs need for effective supply chain management.
New Regulations for Automotive Supply Chains?
We often hear about how coming regulations will transform the global supply chain. Last week, we wrote about how environmental and human rights regulations will have supply chain implications. Now, the United States is working to exclude suppliers with links to China and Russia” from the vehicle supply chain.
Suppliers are just one of the many parties involved in the shipment of goods worldwide. The need for supplier transparency is just one of the many reasons why a platform that helps with visibility, collaboration, and supply chain data (for optimization and compliance) is essential now and will grow even more critical in the future.
The Importance of Supply Chain Orchestration
Effective supply chain orchestration is key to unlocking value in supply chain data. Orchestration means aligning all the parties involved in a shipment so that they can work together to build operational efficiency while minimizing related costs. This story from Fast Company highlights just how valuable true supply chain orchestration can be.
The Cargologik platform was built to give BCOs and LSPs a high level of orchestration, including features for everything from real-time visibility to document management. If you’re interested in technology that delivers ROI in the form of a streamlined supply chain and cost control, you’ll want to get started with Cargologik.
