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As of this morning, a strike involving 45,000 members of the International Longshoremen Association (ILA) is underway. Closures are expected among 36 ports along the East and Gulf coasts. These ports are responsible for nearly half of all US shipments, and their shuttering will mean huge delays and disruptions. Depending on how long the strike lasts, this could prove especially dire for supply chains as we head into the holiday season.
One of the best ways to help us stay afloat during this crisis is by analyzing the repercussions of and responses to previous strikes. Some of these strikes include the West Coast Longshoremen’s Strike, the Liverpool Dockers’ Strike, the West Coast Port Shutdown, and the Los Angeles and Long Beach Port Strike. All four caused significant economic and operational hardships for supply chains. At the same time, they taught shippers the importance of preparation, communication, and staying informed.
The West Coast Longshoremen’s Strike
The West Coast Longshoremen’s Strike took place in July of 1971. It was among the most expensive and longest-lasting strikes in US history, continuing straight for 130 days.
The strike was a direct result of the Pacific Maritime Association (PMA) deciding to automate its cargo operations at several ports, which workers believed would cause job losses and reductions in pay. In response, the International Longshore and Warehouse Union (ILWU) called on longshoremen to stop working.
Thousands soon joined the protest, causing huge disruptions across the supply chain. In response, President Richard Nixon declared a state of emergency. Although the strike ended in September of that same year, the damage had already been done, and the US suffered millions of dollars in losses.
Lessons learned
The West Coast Longshoremen’s Strike revealed the tremendous impact labor disputes can have on supply chains. It only took a few months for the US to experience huge economic and operational challenges. Of course, some of these challenges could have been avoided if the shippers had put contingency plans in place. We can’t go back in time and provide those, but we can certainly institute them going forward.
The Liverpool Dockers’ Strike
The Liverpool Dockers’ Strike took place in Liverpool, England between 1995 and 1998. Strikers opposed plans for their employer Mersey Docks and Harbour Company to hire non-union employees, which they believed would lead to even more job losses. They were also protesting the firing of five employees by sub-contractor Torside Limited. These former employees had formed a picket line which the employees of Mersey Docks refused to cross, resulting in them being fired as well.
Like with the West Coast Longshoremen’s Strike, voices around the globe rallied to show support. Soon, the strike became symbolic for its stance against privatizing public services.
During the nearly three years in which the strike took place, supply chains in the UK were severely backlogged and delayed. In turn, ports across Europe suffered disruptions and congestion as they tried to handle huge increases in shipment volume.
Lessons learned
The Liverpool Docker’s Strike showed just how vulnerable supply chains are to strikes, how long those strikes can last, and how far-reaching their consequences can be. Fortunately, the strike ended in 1998 after workers accepted a settlement that addressed some of their demands. However, if it had continued, the consequences for shippers would only have worsened. This is why shippers need to always prepare for the worst, because a strike doesn’t have a set end date, and it can easily cause ripple effects to other ports.
The West Coast Port Strike
The West Coast Port Strike took place during 2002 and once again involved members of the ILWU opposing the PMA. In this case, the PMA had decided to lock out workers following issues with contract negotiations.
The West Coast Port Strike lasted for 11 days, at which point President George W. Bush invoked the Taft-Hartley Act. This Act required workers to return to work for 80 days as they continued negotiations. These negotiations were finalized under a new contract in 2003.
Unfortunately, although the strike didn’t last long, it overlapped with peak holiday shopping. This meant sizable delays for presents and other festive purchases, as well as additional stress on supply chains as they tried to maintain their operations. The same issue could potentially arise as a result of today’s ongoing strike.
Lessons learned
The West Coast Strike resulted in billions of dollars in losses. It also forced retailers to adjust their routes, alter their delivery schedules, and more generally attempt damage control. Various product types were affected, from high-value electronics to children’s toys. In short, the strike showed how quickly and severely port closures can affect supply chains during the holidays and highlighted the importance of being prepared.
The Los Angeles and Long Beach Port Strike
The Los Angeles and Long Beach Port Strike occurred in 2015, and it involved two of the world’s busiest ports. Workers were protesting changes in working conditions, such as outsourcing and automation. Like the strikers before them, they were also concerned with job losses.
Although the strike only lasted a few days, it cost the US billions in losses. It also led to notable disruptions across the supply chain as shipments were forced to alter their routes. This further caused issues for supply chains as they needed to come up with additional funds to pay for changes in transportation.
The strike ended on February 2015 when the PMA agreed to provide better job security and wage increases. By this point, however, many had begun to view the Los Angeles and Long Beach Ports as unreliable and to more widely question the viability of port shipments.
Lessons learned
About 20,000 workers participated in the Los Angeles and Long Beach Port Strike, making it one of the biggest in US history. This number pales in comparison to today’s 45,000+ anticipated participants, which is all the more reason why shippers need to prepare. Furthermore, the strike brought to light the importance of having backup plans, since two of the most used ports were rendered unusable simultaneously.
How Overhaul helps companies prepare for port closures
Today’s strike will likely impact everything from the Port of Baltimore to ports along New York and New Jersey and beyond. As East and Gulf coast ports prepare for this work stoppage, supply chains must prepare for their own response.
Even if you typically don’t use Gulf or East Coast ports, it’s important to keep aware of changing conditions. There’s no way to know how long the strike will last, which means that, in the future, your own shipments could be impacted.
Fortunately, companies can work with Overhaul to navigate the current strike. We can provide alternate routes to keep your deliveries on time and also provide real-time insights into your shipment’s status as it travels from the US across the globe.
Additionally, port closures mean that shipments often sit around idly for far longer than is safe. This can mean spoilage for time and temperature sensitive goods and even encourage theft. With our risk management support, we’re able to alert you to any suspected temperature deviations or criminal activity. You can then take decisive action and quickly intervene.
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