Expert: Dock Worker Strike Throws Volatility Into Shipping, Could Have Significant Adverse Impacts on Supply Chain

Newswise — The dock workers’ strike, which began at midnight, could have severe impacts on many industries, disrupting supply chains throughout the country and the world. There is no way to quickly reroute freight, and the uncertainty around the strike’s end date will make shippers hesitant to take alternate routes, such as through the Panama Canal and to the Port of Los Angeles. Ben Ruddell, director of the FEWION Project at Northern Arizona University, which tracks supply chains throughout the country, can speak to the potential short- and long-term effects of the closures of Atlantic ports on the U.S. supply chains and economy.

Expert: Ben Ruddell, director of the FEWSION Project and professor in the School of Informatics, Computing, and Cyber Systems; (928) 523-3124 or [email protected]

Other points of note:

• This strike has been planned for weeks, so most logisticians and manufacturers are prepared for it. However, the longer the strike goes on, the worse the impacts will be.
• Atlantic port closures will have the biggest impact on the West African and Caribbean countries who depend on the USA and Canada, not on U.S. consumers.
• “The overwhelming majority of the U.S. economy is domestic or reliant on trade with Canadian and Mexican suppliers. So, while this strike is disruptive to some U.S. manufacturers and retailers, it is not an emergency in the short term."
• "Because all Atlantic ports are on strike, there are no easy alternatives for rerouting freight. West Coast ports are weeks away and lack the capacity to absorb this traffic. The labor union is communicating to the world that it controls a whole continent's access to Atlantic trade."
• "The U.S. economy is not resilient to a long-term closure of all Atlantic ports. The labor union controls an entire critical infrastructure upon which the nation depends. This is why the U.S. Congress enacted the Taft-Hartley Act to give the President the authority to stop a strike when necessary. The Air Traffic Control strike in 1981 was a similar case, and the president invoked Taft-Hartley in that instance. This may happen again if the strike continues too long."

What is FEWSION?

FEWSION, which is funded by the NSF, uses comprehensive data mapping to monitor domestic supply chains down to individual U.S. countries. It was developed to give government officials and emergency managers accurate information about their supply chains so they can be aware of the risks from hurricanes, pandemics, geopolitical issues and other factors that can affect supply chains, thus helping communities and states plan and give confidence to consumers as they understand how resilient their supply chains are. FEW-View™, the supply chain visualization website, is available to the public.