Due to the impact of Hurricane Helene and the looming threat of ILA port strikes set for October 1, the U.S. supply chain may encounter significant disruptions.
On Thursday, September 26, Hurricane Helene is slated for landfall in Florida as a potential Category 4 storm. Port Tampa Bay and West Florida are expected to experience damaging storm surge and heavy rain. The Southeast will also be impacted, with Central Georgia and the surrounding areas expecting heavy rainfall of up to 10 inches or more, flooding, and other damages.
In a statement issued on September 25, Port Tampa Bay said they are preparing to close the port’s waterways, but will keep the port’s landside operations open as long as possible to ensure gas and other fuels can move out of the port to consumers. The port staff is committed to resuming full operations as soon as it is safe to do so. Additionally, maritime operations have ceased at the ports in the following Florida cities: Manatee, Sarasota, St. Petersburg, Panama City, and Port St. Joe.
Meanwhile, the International Longshoremen’s Association (ILA) plans to go on strike at all of its Atlantic and Gulf Coast ports on October 1, if a new contract cannot be reached with the United States Maritime Alliance (USMX). ILA is negotiating for better wages and continued job protection against artificial intelligence and emerging technologies. The two parties have yet to come to an agreement. The ports potentially facing a strike manage over 68% of the United States’ containerized exports. If the strike occurs, it could lead to inventory shortages, increased transportation and storage costs, and backlogs and delays.
A.N. Deringer, Inc. is closely monitoring the ILA strike and providing timely updates on the ILA Strike Resource Center.
Sources:
Florida Braces for Hurricane Helene’s Landfall Thursday (constantcontact.com)
Hurricane Helene Shuts Down Florida’s Gulf Coast Ports (maritime-executive.com)
East Coast port strike looms for first time since 1977. Here’s what to know. (CBS News)