Concerned that East and Gulf Coast dockworkers and ocean carriers won’t reach a contract agreement in coming weeks, some U.S. retailers are already rerouting imports to minimize supply chain disruption, the Retail Industry Leaders Association (RILA) reported last week.
In a July 10 letter that was circulated to the media, RILA urged the International Longshoremen’s Association and the United States Maritime Alliance, Ltd. to reach a contract agreement well in advance of the Sept. 30 deadline to prevent a disruption to trade leading into the critical holiday period.
The ongoing labor negotiations affect 14 East and Gulf Coast ports, which together account for 95 percent of all containerized shipments from Maine to Texas.
“[T]he absence of certainty over the outcome of the negotiations and facing the real possibility of a September stoppage, retailers have no choice but to continue planning for a shutdown,” said RILA President Sandy Kennedy. “Indeed, some of our members advise that they are beginning to redirect their supply chains in order to allow adequate lead time to ensure that customer needs can continue to be met, regardless of whether the negotiations are successfully concluded by September 30. Supply chain changes of this magnitude are not desirable to retailers because they take time both to implement and to reverse.”
RILA members account for more than $1.5 trillion in annual sales, millions of American jobs and more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad.
