The links within the supply chain prove their resiliency time and time again, but it seems as if their mettle is being tested more and more often, and the challenges are growing in intensity, from natural disasters to a major bridge collapse to the recent port strike affecting the East and Gulf coasts of the United States. Logistics operations must then also become more resilient to face whatever obstacles lay ahead.
While the Port Strike May be Resolved, Future Labor Disruptions Pose Potential Disruptions
The International Longshoremen’s Association (ILA) Oct. 1 strike involved some 45,000 port workers at 36 ports from Maine to Texas in the union’s first walkout since 1977. JP Morgan analysts had predicted the strike would cost the U.S. economy about $5 billion for every day it lasted.
While most ports were only closed for three days, a reported 54 containerships were lined up outside ports on the East and Gulf coasts, waiting to berth when the ILA dockworkers went back to work. The biggest backlogs were at the ports of New York, New Jersey, and Savannah, Georgia. Pricing platform Xeneta estimated it would take two to three weeks before the flow of goods returned to normal – from a strike of just a few days. Imagine if the strike lasted three weeks instead of three days.
While the ILA returned to work after the United States Maritime Alliance agreed to a 62% wage hike, the union still does not have a new contract. The deal that expired on Sept. 30 has been extended until Jan. 15, 2025, meaning there could be more work stoppages ahead if the two sides can’t resolve other issues, particularly the ILA’s opposition to the ports’ use of automation.
In a Volatile Labor Landscape, Resilience is Key
Richie Daigle of Tive told Supply Chain Dive after the ILA members returned to their jobs that “while companies can breathe easier in the short term, it’s likely that most companies are aware that more disruptions could be on the way in the not-so-distant future. Whether hurricanes, strikes, pandemics, or other unforeseen destabilizing events, sizable disruptions seem to be commonplace, making the need for a well thought out plan propped up by a thoughtful application of modern technology all the more necessary.”
A well-thought-out plan and modern technology are necessary for logistics providers to adapt to supply chain disruptions and provide reliable service. Customers will become long-term partners if their logistics providers can deliver in bad times as well as good and help keep their costs in line.
RJ Logistics: Your Ally for Resilient Logistics
At RJ Logistics, we do whatever it takes to deliver for our customers – no matter the supply chain disruption or challenge. We work with customers before the need arises to develop supply chain strategies so we overcome any and all shipping obstacles and always meet deadlines.
Diversified Shipping Solutions
RJ Logistics offers a variety of transportation options and routes, allowing shippers to adapt quickly to disruptions. By providing access to multiple carriers and alternative shipping modes, RJ Logistics ensures that shipments can continue moving even when certain routes or ports are affected by labor issues or other disruptions. We form deep bonds with our shipping partners and provide them with customized solutions to meet their needs for timely delivery and reliability.
Real-Time Visibility and Tracking
With advanced tracking technology, RJ Logistics enables shippers to monitor their shipments in real time. This visibility allows shippers to respond promptly to delays or disruptions, making informed decisions to reroute or adjust logistics plans as necessary, thereby maintaining operational continuity. All of our carriers have Macropoint and ELD tracking, so we know exactly where our customers’ freight is at all times.
Dedicated Account Management and Support
RJ Logistics provides dedicated account managers who work closely with shippers to understand their unique needs and challenges. This personalized support helps shippers develop tailored strategies for building resilience, including contingency planning and proactive communication, ensuring that they are prepared for any disruptions that may arise. We also closely monitor weather, labor, and geopolitical forecasts, as well as current events, to always keep shipments on track at the best rates possible.
RJ Logistics Is Ready for Any Supply Chain Disruptions
At RJ Logistics, we are driven by our mission to deliver positive experiences for our customers, partners, and community through actions guided by our core values and principles. Headquartered in Southfield, Michigan, we also have logistics experts ready to handle customers’ needs at our facilities in Laredo, Texas, and Indianapolis.
Whether it’s cross-border shipping, expedited services, temperature-controlled logistics, truckload, or oversized freight, RJ Logistics has you covered. We communicate with our customers every step of the way.
Schedule a call with RJ Logistics today.
