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Home » Retail Organization Urges East Coast Ports and Longshoremen to Avoid Work Stoppage

Retail Organization Urges East Coast Ports and Longshoremen to Avoid Work Stoppage

July 18, 2012
RILA

The ongoing labor negotiations affect 14 East and Gulf Coast ports, which together account for 95 percent of all containerized shipments to the Eastern seaboard.

The retail industry relies on an efficient supply chain to ensure consumers have access to the products they seek at affordable prices. Ports play a critical role in the supply chain and a potential disruption would be destructive to the retail industry's ability to deliver their goods to consumers in a "just in time" fashion.

"This potential disruption would be devastating to the retail industry as it would disrupt the flow of goods, resulting in lost sales and aggravated customers," said RILA president Sandy Kennedy.

While a work stoppage would be the most harmful outcome, the letter reminded negotiators that if the parties fail to reach an agreement well in advance of the September 30 deadline, retailers will be forced to redirect shipments in order to avoid an interruption in the flow of goods.

"[T]he absence of certainty over the outcome of the negotiations and facing the real possibility of a September stoppage, retailers have no choice but to continue planning for a shutdown.  Indeed, some of our members advise that they are beginning to redirect their supply chains in order to allow adequate lead time to ensure that customer needs can continue to be met, regardless of whether the negotiations are successfully concluded by September 30. Supply chain changes of this magnitude are not desirable to retailers because they take time both to implement and to reverse," said Kennedy.

Source: RILA

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KEYWORDS Business Strategy Alignment Global Gateways Global Supply Chain Management Global Trade Management Logistics logistics & supply chain Logistics Outsourcing Regulation & Compliance Retail Supply Chain Analysis & Consulting Supply Chain Management Transportation & Distribution Transportation Management work stoppage at U.S. East Coast ports
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