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What You Need To Know About A Potential U.S. Port Strike

  • by Daina Mueller
  • Tuesday, January 7, 2025 11:18:43 AM

The prospect of an upcoming labor strike at U.S. ports reinforces the significant impact strikes can have on household goods shipments and relocating employees. As the possibility of a U.S. port strike looms, we offer some options to consider, as well as some long-term strategies you can put in place for future events.

What Do You Need to Know About Potential Strikes at U.S. Ports?

The International Longshoremen’s Association (ILA), which represents approximately 45,000 workers, has threatened to strike on January 15, 2025 if a new contract is not reached.

Key issues for negotiations include the use of automated systems like Auto Gate and the increasing presence of IT personnel on marine terminals. The ILA has stated they will not extend the current contract or accept external intervention. This potential strike could impact several major ports along the East and Gulf Coasts. We have already seen some rail yards take preventative steps to refuse cargo to prevent a backlog in anticipation of a strike, but at this time it is unknown if a strike will happen or how long it will last.

What is the Impact of Port Strikes on Relocation Shipments?

Port strikes have a significant impact on relocation household goods shipments, including:

  • Household goods shipping delays: Port strikes can cause household items to remain stuck in transit, delaying employees' ability to settle into new homes.
  • Higher transportation costs: Shipping providers may need to reroute goods via more expensive alternatives, such as air freight, increasing relocation budgets.
  • Logistical challenges: Finding and organizing alternative transportation solutions can be difficult without a reliable partner.

Proactive Steps to Mitigate Risks

  • Air freight for essential goods: Ship essential items via air freight to minimize disruption for employees awaiting their household goods.
  • Extend temporary housing: Ensure relocating employees have sufficient temporary housing while waiting for their shipments to arrive.
  • Temporary storage: Store goods in warehouses at the origin location to avoid higher costs such as port storage or demurrage fees.
  • Alternative ports: Utilize other operational ports (e.g., U.S. West Coast ports) which can serve as alternatives, though a prolonged strike may lead to congestion.
    • Note: Canadian and Mexican ports are not viable options for U.S.-bound household goods shipments due to customs restrictions.

Sirva’s Proactive Approach

Sirva’s global household goods operations team continuously monitors potential strikes and flags shipments likely to be affected. This allows us to take proactive measures to minimize disruptions, costs, and delays.

 

5 Ways to Prepare for a Port Strike and Manage Household Goods Shipments

To minimize the stress and disruption caused by port strikes, it's essential to adopt proactive strategies for managing household goods shipments. Below are key approaches to ensure smoother relocations.

1. Diversify Shipping Routes and Methods

 

     

     

  • Leverage alternative ports and transportation combinations, such as sea, air, and land shipping.
  • Collaborate with your relocation partner to identify flexible shipping methods that allow rerouting to mitigate delays.

 

2. Build Flexibility into Relocation Timelines

 

     

     

  • Encourage employees and teams to include buffer periods in their schedules to account for possible delays.
  • Ensure essential items are shipped separately (e.g., via air freight) so employees have what they need during the transition.

 

3. Establish Temporary Storage Solutions

 

     

     

  • Arrange temporary storage facilities at the origin location to protect household goods until disruptions clear.
  • This reduces port-related costs, such as demurrage or chassis fees, and allows for quick delivery when shipments resume.

 

4. Communicate Proactively with Employees

 

     

     

  • Provide relocating employees with regular updates about potential delays and shipment statuses.
  • Clearly outline contingency plans and alternative solutions to ensure employees feel supported.

 

5. Partner with a Trusted Relocation Provider

 

     

     

  • Work with an experienced relocation partner, like Sirva, that can offer:
    • A global network and multiple routing options.
    • Real-time solutions for rerouting shipments during logistical challenges.
    • Expert guidance in navigating delays and managing expectations.

 

Conclusion

Port strikes are unpredictable, but preparation can minimize their impact. Sirva's experience and comprehensive global network make it easier to adapt to disruptions, ensuring employees receive their household goods with minimal delays. By diversifying shipping options, maintaining clear communication, and building flexibility into plans, you can keep your relocation programs running smoothly despite external challenges.

For more information on how we can help you manage your household goods shipments, please email us at concierge@sirva.com or reach out to your Sirva representative.

 

SMART. HELPFUL. HUMAN. RESPONSIBLE.