Forwarder’s Forum: Maritime strike could bring gains, headaches for airfreight

A maritime strike would be bad for the U.S. economy, and President Joe Biden needs to intervene to prevent it. Here are some of the reasons why: It would disrupt supply chains. The West Coast ports handle over 50% of all U.S. imports. A strike would disrupt the flow of goods through these ports, leading to shortages of goods and higher prices for consumers. It would hurt businesses. A strike would hit companies that rely on imported goods particularly hard. They would have to pay higher prices for goods, which would cut into their profits. Some businesses might close down if they can’t get the necessary goods. It would cost jobs. A strike would lead to job losses at the ports and businesses that rely on the ports. The U.S. economy could lose millions of jobs if the strike continues for an extended time. [caption id="attachment_57133878" align="alignleft" width="300"] (Photo/Brandon Fried)[/caption] The president is responsible for intervening to prevent a maritime strike, as he did a few months ago to avert a U.S. rail work stoppage . He can do this by appointing a mediator to help the two sides reach an agreement. He can also use his bully pulpit to pressure the two sides to agree. Tensions are escalating and the stakes are high. A maritime strike would be a disaster for the U.S. economy, costing the country more than half a billion dollars each day. The president must act now to prevent it. Air cargo can benefit As severely as a maritime strike would harm the U.S. economy, forwarders know it could benefit air cargo. Despite its increased cost, air cargo is more reliable. If there is a strike at the ports, companies will move to ship their goods by air, driving up demand for airfreight capacity. This shift could be a boon and relief for air cargo carriers, especially since reduced demand has resulted in a more than 13% reduction in cargo volumes over the last year. As passengers continue to fill planes to spend accumulated funds for personal travel, airlines are flooding the market with significant belly capacity, which was long yearned for but not realized during the pandemic. Of course, a maritime strike would also have some negative consequences for air cargo as airports would become overwhelmed with cargo again, as experienced during the pandemic and even now. In a recent Airforwarders Association (AfA) survey, 95% of those members who responded reported significant delays when dropping or recovering cargo at most primary gateway airports. The throughput issue is still with us, so several associations, including the AfA, are lobbying Congress to address the challenge. A spike in maritime strike-driven volumes could exacerbate the problem and delay shipments. Forwarders should prepare customers Freight forwarders can help customers prepare for a strike by: Recommending alternative shipping routes. If a strike does occur, freight forwarders can help customers find other routes, such as through Gulf Coast or East Coast ports. Providing updated shipping information. Freight forwarders can keep customers updated on the latest developments in the strike situation and any changes to shipping schedules. Working with customers to develop contingency plans. These might include stockpiling inventory or utilizing airfreight instead. Of course, the earlier forwarders can tell customers about the potential for a strike, the better. This proactive communication will give them time to plan and avoid any surprises. It is also important not to wait for customers to come to the forwarder with questions. Therefore: Reach out to shippers regularly to provide updates on the situation. Be flexible. The situation could change quickly, so it’s essential to adapt. Finally, be patient — as resolving the strike may take some time. Exercise patience with your customers and work with them to find solutions.

Forwarder’s Forum: Maritime strike could bring gains, headaches for airfreight

FRA cargo volumes continue decline

IAG Cargo adds Heathrow to Cincinnati route for e-commerce

Related Posts

From the Cockpit with K2 Aviation’s Karl Ryan

Production freighter activity highlights May FATs

Widebodies account for more than half of April’s transactions

IAG Cargo adds Heathrow to Cincinnati route for e-commerce

Cargo Facts Free Newsletters

Cargo Facts Connect Podcast

Follow Us

Welcome Back!

Retrieve your password