As the East and Gulf Coast container port strike unfolds, understanding which imports are most affected is crucial for stakeholders in the supply chain. Jason Miller, a supply chain professor, recently shared data on the top 25 imported commodities by tonnage year-to-date through July. This insight offers a glimpse into which products could see the most significant disruptions, especially if the strike continues.
October’s US Port/Rail Index reports a severe impact on the East & Gulf coasts due to the ILA strike. While immediate disruptions may seem minor, significant challenges will arise once operations resume, including congestion, equipment shortages, and driver productivity drops. Additionally, West Coast operations are now under pressure from diverted volumes.
Top Commodities Affected by the Strike
The table highlights the top 25 imported commodities into the lower 48 states based on metric tons. Of particular interest are the categories where the East and Gulf Coast ports account for 70% or more of the total imports:
1. Furniture and parts (HTC 9403) – 4.5 million tons (55% via East & Gulf)
2. Auto parts & accessories (HTC 8708) – 3.2 million tons (55%)
3. Bananas and plantains (HTC 0803) – 2.9 million tons (84%)
4. Seats and parts (HTC 9401) – 2.3 million tons (52%)
5. Semiconductors & solar cells (HTC 8541) – 2.3 million tons (60%)
6. New pneumatic tires (HTC 4011) – 2.1 million tons (46%)
7. Building materials like unglazed ceramic tiles (HTC 6907) – 1.7 million tons (80%)
Products such as bananas, building materials, and solar cells are among those heavily reliant on the East and Gulf Coasts for entry into the U.S. This concentration of imports in specific ports makes these commodities particularly vulnerable to prolonged strikes.
Key Challenges to Watch
Several key challenges are due to the strike and its aftermath:
• East & Gulf Coast ports face severe disruptions during and after the strike.
• West Coast congestion is rising from diverted volumes due to strike-avoidance rerouting and Red Sea diversions.
• Rail congestion is building on the West Coast from increased IPI (Inland Point Intermodal) volumes.
Shippers should prepare for major delays and add additional capacity to stay ahead of the congestion.
U.S. Port Performance Challenges
One of the biggest obstacles in the current ILA & USMX negotiations is the poor performance of U.S. ports on an efficiency basis. According to data from The World Bank and S&P Global’s 2023 Container Port Performance Index (CPPI), U.S. ports lag far behind global standards. For instance:
• Charleston is the best-performing container port involved in the strike, ranking 60th globally.
• Savannah, in contrast, ranks much lower at 398th globally, making it one of the least efficient ports.
This inefficiency is significant because carriers generally do not collect terminal handling charges (THCs) for imports to the U.S. As Peter Tirschwell of the JOC points out, any wage increase maritime employers agree to in contract negotiations will come directly out of the carriers’ profits. Without THCs to offset the costs, the burden falls squarely on the carriers.
The inefficiency of U.S. ports, on all coasts, will continue to pose challenges with union labor contracts. While many industries have embraced automation and technology to improve efficiency, U.S. ports have resisted this trend. If this resistance continues, U.S. ports risk falling even further behind global competitors in Asia and Europe.
Potential Impact on Supply Chains
Miller notes that the severity of disruptions depends largely on the duration of the strike. A quick resolution (within a week) would minimize disruptions. However, if the strike continues for more than two weeks, systematic knock-on effects could ripple through industries reliant on these imports.
For example, sectors such as automotive, construction, food and beverage, and consumer electronics could see delays in receiving crucial components and goods, impacting production and sales timelines.
How Taylor Logistics Can Help
During times of disruption, like the ongoing port strike, Taylor Logistics is equipped to provide alternative solutions to keep supply chains moving. With strategically located warehouses across the Midwest and East Coast, Taylor offers customized warehousing and transportation services that ensure your inventory is managed efficiently and delivered on time. Our expertise in food-grade, CPG, and automotive logistics, along with seamless integration through EDI and API connections, allows us to respond quickly and scale services based on your needs. Whether you require transloading, multi-client warehousing, or D2C fulfillment, Taylor Logistics is committed to supporting your business through any supply chain challenge.
Source: Jason Miller, Supply Chain Professor
