Port Strike Is A Problem for Trucking Industry

East Coast and Gulf Coast ports handle about 43% of all US imports and billions of dollars’ worth of imported goods, from cars and light trucks to electronics to food, clothing, jewelry and agricultural products.

Remember when we had surging inflation due to supply chain problems?

We thought they were over, but a coming strike could open old wounds.

Retailers and manufacturers are concerned for the holiday season as members of the International Longshoremen’s Association go on strike Oct. 1 at 13 of the nation’s major East Coast and Gulf Coast ports. The longer the strike goes… the worse it will affect trucking!

This port strike will have significant ripple effects on the trucking industry, here’s how.

Cargo Delays and Congestion

When dockworkers go on strike, cargo remains at the port, creating massive delays in unloading ships.

This directly affects truckers waiting to transport goods inland, leading to longer wait times.

Then, as containers pile up at ports, it can create bottlenecks that make it difficult for truckers to pick up and drop off shipments, resulting in congested port areas, limiting trucking capacity.

Supply Chain Interruptions

While toilet paper is not Just-in-Time Inventory, it is painful to remember the toilet paper fiasco during the pandemic.

Regardless, many industries, including retail, rely on just-in-time inventory management, where goods are delivered as needed. A port strike could disrupt this flow, forcing businesses to slow or halt production.

Truckers could see reduced demand as companies adjust schedules to accommodate delayed shipments.

Additionally, companies may turn to alternative transportation modes, like rail or air freight, which can reduce demand for trucking services in the short term.

Detours to Other Ports

While this potential strike could affect east coast and gulf coast ports, there may be a surge of west coast port freight.

This would create new trucking routes and opportunities, but also cause delays as cargo must travel longer distances.

Of course, truckers may have to travel farther to pick up shipments from alternative ports, increasing fuel costs, driving times, and potentially requiring additional regulatory compliance, like crossing borders.

Canada: Ships will be rerouted into Canada. There is an opportunity to get loads from Canada back into the US but you will need to get your CVSA authority, updated insurance, and more. CNS can easily help you with this process! Click link and get started or call us at 888.260.9448.

Licensing: The other thing to consider is CHANGING what commodities you haul – which means updating your Biennial Update (MCS150) to make sure FMCSA knows about the changes. CNS can quickly get this done, and we might advise you to update your insurance policy or get requoted about these changes. Click link and get started or call us at 888.260.9448.

Driver Shortages and Idle Time

But wait, there’s more!

Some truck drivers could face reduced workloads if goods are not being moved.

Others may find themselves idling at ports waiting for the strike to end, which translates to lost income.

The trucking industry already faces a driver shortage and any port delays might make truck driving even less appealing due to increased uncertainty and unpredictability of work, worsening the problem.

Price Volatility

With fewer goods moving through the supply chain, capacity tightens, and demand for available trucks might spike. This could lead to a temporary increase in freight rates.

This is not good on what we were hoping to be an end to the freight recession we are facing.

If truckers are required to travel longer distances due to detours or congestion, the additional fuel consumption could lead to higher fuel costs, which might be passed on to consumers or reduce truckers’ profitability.

Are you ready to be proactive?

Our safety management programs are perfect for combining multiple services and can be tailored to fit your needs, whether you are a new owner operator or a seasoned trucker or business owner.

At CNS, our DOT Compliance Programs focus on Proactive Safety Management (PSM), a mindset that will ensure your fleet’s safety and compliance is always in order and ahead of the FMCSA.

Our PSM Motor Carrier Program includes:

• ELD management
• Driver Qualification File Management
• New driver on-boarding
• Driver safety meetings
• CSA score management
• Policies and handbooks
• Vehicle maintenance
• and more