SupplyChainToday.com

Minimize Disruption from a US Port Strike.  

Implementing these strategies can help minimize disruptions, protect the economy, and reduce the duration of a US port strike in the U.S.

Greater Detail, Expanded from Above:

 1. Government Involvement & Mediation
  • Early Federal Intervention: The government can use mediation services like the Federal Mediation and Conciliation Service (FMCS) to bring parties together for negotiations before a strike begins.
  • Taft-Hartley Act: If the strike severely threatens national health or safety, the president can invoke the Taft-Hartley Act to force workers back on the job for an 80-day cooling-off period while negotiations continue.

2. Improved Negotiation Strategies

  • Phased Agreements: A phased approach to salary hikes and benefits can be more acceptable to both sides, especially in volatile economic conditions.
  • Third-party Facilitators: Hiring neutral, third-party facilitators can help defuse tensions and offer new perspectives on deadlocked issues, such as revenue distribution from container royalties.

3. Supply Chain Adaptation

  • Diversify Cargo Routes: Redirect shipments through unaffected or international ports (e.g., Canadian or Mexican ports) and increase use of rail and trucking options to move goods.
  • Port Automation: Invest in port automation to maintain limited operations during strikes, though this can be a contentious solution if not balanced with workers’ interests.

4. Business Preparedness

  • Stockpiling & Supply Diversification: Encourage businesses to maintain larger inventories of critical goods in preparation for potential disruptions. Diversify suppliers to reduce reliance on affected ports.
  • Inventory Management Tools: Invest in advanced inventory forecasting and supply chain risk management tools to anticipate and manage disruptions more effectively.

5. Private & Public Partnerships

  • Collaboration with Federal Agencies: Work with the Department of Transportation and the Coast Guard to keep critical operations running.
  • Temporary Workforce Solutions: In cases of severe disruption, consider bringing in temporary or cross-trained workers to fill essential roles until negotiations are resolved.

6. Crisis Communication

  • Transparent Communication: Establish clear communication channels between stakeholders (port authorities, government, businesses, and the public) to update on delays and mitigation efforts.
  • Public Relations Campaigns: Use media campaigns to manage public perception, avoid panic buying, and maintain trust in supply chain systems.

7. Legislative Changes

  • Incentivize Good-Faith Bargaining: Strengthen policies that encourage timely and fair labor negotiations to prevent future strikes.
  • Investment in Infrastructure: Invest in port infrastructure upgrades (automation, alternative transportation hubs) to reduce dependency on specific regions.

Implementing these strategies can help minimize disruptions, protect the economy, and reduce the duration of a port strike in the U.S.

 

SCM and Total Cost of Ownership Quotes

  • “Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win.” ~Sun Tzu, The Art of War.
  • “What’s dangerous is not to evolve, not to invent, not to improve the customer experience.” ~Jeff Bezos
  • “We’re going to show them, they’re going to have to give a f*** about us, because nothing is going to move without us!” he said to cheers. “We’re going to win this f***ing thing. Trust me. They can’t survive too long. We’re going to get what the f*** we deserve.” ~Harold Daggett, President of the International Longshoremen’s Association
  • “Without logistics the world stops.” ~Dave Waters
  • “In battle, there are not more than two methods of attack–the direct and the indirect; yet these two in combination give rise to an endless series of maneuvers.” ~Sun Tzu
  • “It is not necessary to change. Survival is not mandatory.” ~W. Edwards Deming
  • “Trucking companies get paid for a round trip where the truck driver needs to pick up and drop off the containers at the same port. The diversions are adding to transportation costs because of the additional mileage.” ~Paul Brashier
  • “He will win who knows when to fight and when not to fight.: ~Sun Tzu
  • “Effective leadership is not about making speeches or being liked; leadership is defined by results not attributes.” ~Peter Drucker
  • “Plan for what it is difficult while it is easy, do what is great while it is small.” ~Sun Tzu

Logistics Learning

1 2 3 4 5 7 8 9 10

Leave a Comment

Scroll to Top