Smart Thinking And The Port Strike

Eduardo Del Riego
CEO
PayCargo

     Moving cargo during the U.S. dockworkers strike, which is halting half the nation's ocean shipping, is the question.
     Eduardo Del Riego said:

I am following this situation very closely.
There is no real way of getting the volumes moving to the level to off setting this strike.
     A mix of air and rerouting cargo to West Coast ports, Canada, and Mexico
can keep a minimal amount of products moving.
     Anything over two weeks will create shortages and damage our
economy.

Euro Forwarders Knock Around The Clock

Nicolette van der Jagt
Director-General
CLECAT, (European Association for Forwarding,
Transport, Logistics and Customs Services).

Nicolette van der Jagt, who has served as the Director General of CLECAT since January 2012. Nicolette is knowledgeable, dependable and resourceful, with impressive character and keen political instinct.
     Here is her thoughtful take on matters today concerning Europeans and the U.S. East Coast Dock Strike.

For European freight forwarders and shippers, the unfolding U.S. dockworker strikes on the east and Gulf coasts are intensifying an already challenging situation. With the ongoing disruptions caused by the Red Sea crisis, the industry is forced to deal with equipment imbalances, higher costs, and operational bottlenecks.
     One of the immediate impacts is the shifting of containers to less optimal locations, which means freight forwarders will need to manage the logistical complexity of repositioning equipment. This disruption is already leading to surcharges and re-routing expenses as shippers look for ways to mitigate delays. Additionally, there is an expectation that freight rates will surge due to heightened demand and capacity constraints, particularly on key shipping lanes.
     For European freight forwarders, the knock-on effects are that they will need to consider alternative strategies, such as increasing reliance on airfreight. With demand for air cargo capacity spiking rates are expected to soar, particularly for express and guaranteed cargo. This complex situation requires European freight forwarders and shippers to proactively manage their supply chains by tracking inbound shipments closely, collaborating with shipping lines to find alternative routes, and considering expedited solutions like airfreight.

Port Strike View From Ram Menen

Ram Menen
Emirated SkyCargo
Retired

     Ram Menen is well known in the industry as the man that started up and built the cargo division of Emirates SkyCargo.
     He is also a founding member of The International Air Cargo Association TIACA as well as Past President, CEO and Chairman of the Board.

Although there is never a good time, this U.S. east coast port strike has come at a very inopportune moment, when the market is already at high point, even, before the normal peak periods.
     The alternatives would be to find other ports which are not really affected and reroute the ships to those places.
     The chances are every solution you look will create additional transportation/distribution costs as well as expensive delays for cargo which is already in the waters.
     Air cargo will benefit while shippers try to get top up inventory as quickly as possible.
     But capacity at the moment is tight and finding capacity will be a bit of challenge.
     Rerouting ships to external ports where sea/air can be affected can also be a good strategy.
     In the immediate cure, the closure of factories in China for the golden week celebration, will free up some air capacity for short haul sea/air mode, however, the window of opportunity is already closing.
     The demand for air cargo post the golden week is going to be extremely tight and will be at a premium.
     Every which way you look the supply chains are going to take a hit.
     The impact will affect every aspect of normal life in the regions where the strikes are taking place and elsewhere.
     This where logisticians can and will get very creative and find best possible solutions.