The strike at major ports on the US East Coast, following a stalemate in negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) , threatens to cause chaos in global supply chains , adding to the tensions that are constantly being experienced around the world.

In this regard, CH Robinson highlighted in a statement the domino effect on global trade caused by this cause, since the interconnected nature of global trade means that any disruption in US ports can have global repercussions.

In this regard, CH Robinson said that the strike is already creating bottlenecks at key cargo transit points , which could lead to significant delays, as a one-week port disruption has caused delays of up to a month in international shipments.

Shippers globally with cargo destined for this region from Europe, Latin America, Oceania and Asia are feeling the effects, resulting in disruptions in the flow of goods to and from the United States, Canada and Mexico , and must consider how port closures would affect their cargo.

As seen with other global supply chain disruptions, this cascade would result in additional transit time , additional costs and even potential storage and demurrage charges, the logistics company said.

“The strike could affect five of the ten busiest ports in North America, creating a cascading impact that no sector or region could avoid. Companies with cargo destined for the United States from Europe, Latin America, Oceania and Asia are likely to face delays and increased costs. It is crucial that they communicate with their logistics providers to plan alternative or contingency routes,” warned Mia Ginter, Director of Maritime Export for North America at CH Robinson.

Impact on ports and Mexico’s economy

Mexico and the United States maintain a high-volume, constantly active trade relationship, so any disruption at U.S. ports could impact the flow of goods through other routes such as Laredo and El Paso , important transit points for land trade between the two countries.

Due to its strategic geographic location, Mexico relies heavily on U.S. ports for the import and export of goods, so the strike threatens to cause delays in the arrival of essential inputs and raw materials for the Mexican manufacturing industry, affecting key sectors such as the automotive, electronics and household appliance sectors , among others.

With congestion at U.S. ports, Mexican companies could face additional costs due to route diversions or the need to resort to more expensive transportation methods, such as air.

Mexican exporters could also be affected by the strike, as delays at U.S. ports could prevent Mexican products from reaching their overseas destinations on time, affecting the competitiveness of domestic exports or overwhelming domestic options due to diversions.

CH Robinson shared that while no industry is immune to the disruptions caused by this strike, some will be more affected than others, for example, industries that operate on very tight inventory models, such as the automotive or pharmaceutical industries, even two days of a strike could significantly disrupt their operations, which directly affects the operation of these industries in the country.

In this context, CH Robinson has implemented flexible contingency plans in the event of a prolonged strike, so if a large volume of cargo is diverted to the US West Coast, Mexican and Canadian ports could serve as a viable alternative, along with options such as air freight and port transshipment to expedite the movement of critical goods.

On the other hand, CH Robinson indicated that carriers that choose to redirect their cargoes to the West Coast will have to consider the available capacity and the necessary ground logistics support; in addition, temporary storage for the diverted cargo may be required while capacity is freed up in the interior of the country.

The company also expects that rail congestion to the east could also cause delays, as although railroads are prepared to move freight from Southern California and the Pacific Northwest , longer transit times are expected.

Although air freight is more expensive than other options, it allows for quick rerouting. However, air capacity is already limited by high e-commerce demand from Asia and Red Sea detours.

Ports and alternative modes of transport could quickly become overwhelmed in the event of a prolonged strike at ILA ports, so close cooperation between trading partners and global logistics providers will be crucial to mitigate the impact of this crisis on transatlantic trade.

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El cargo C.H. Robinson warns of global logistics impacts due to the U.S. port strike; Mexican and Canadian ports, an option apareció primero en T21.

Starting at the first minute of October 1, the International Longshoremen’s Association (ILA) closed all ports on the east coast of the United States, from Maine to Texas , after failing to obtain better wage conditions in negotiations with the United States Maritime Alliance (USMX).

This situation has led those involved in foreign trade to seek options to meet import and export needs with the United States, so as not to interrupt their supply chain.

To meet this need, AS Intermodal is close to its customers to identify the needs to adjust the supply chain by using Mexican ports as a way to replace their operations in the United States.

“At AS Intermodal we are a logistics solution with assets such as transport units and our own warehouses, where we can take responsibility for the needs of our clients, and where we can also design a specific route,” said Mario Marroquín, general manager of AS Intermodal.

AS Intermodal ‘s service infrastructure includes more than 100 thousand square meters (m2) of logistics infrastructure , 50 thousand m2 for cargo storage in a covered area , where they can carry out the consolidation and deconsolidation of merchandise, which is combined with 30 years of experience in the market.

AS Intermodal has a portfolio of transport services in dry boxes, general and dangerous cargo, steel (coils, plate, rod, pipe), containers (20, 40, 45, 53 feet), Flat Rack, OT, Reefers, Isotanks; transport of dry boxes and platforms to transport general cargo (coils, etc.) and containers (20 and 40 feet).

In the cumulative period up to August 2024, the movement in Mexican ports registers a contraction of 5.4% with 185 million 238 thousand 422 tons, however, loose cargo shows an increase of 2.5% compared to the same period in 2023, while containerized cargo advances 10.1 percent .

Within the National Port System, ports such as Manzanillo and Altamira are those with the greatest progress in loose cargo on their coast, with 11.1% and 16.1%, respectively, compared to the previous year.

In the case of containers (TEU) , Manzanillo (Col.) registered an increase of 8.5% in the referred period compared to the same cycle in 2023, while Altamira (Tamps.) advanced by 8.1 percent.

AS Intermodal has a presence in the ports of Altamira and Manzanillo, as well as in Pesquería (Nuevo León), while with its sister company, MM Carga , it has operations in addition to the aforementioned sites, in Coatzacoalcos (Ver.), Bajío and recently in Nuevo Laredo (Tamps.).

“Together with MM Carga we can design a tailor-made suit for clients who require agile solutions that address the urgency of the situation, as is currently the case with the problems in American ports,” said Mario Marroquín.

This link allows for a fleet of more than 200 motor vehicles , with a diversified portfolio for the handling of maritime containers, loose cargo, comprehensive logistics and specialized projects.

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El cargo AS Intermodal on Track to Meet Demand Amidst Port Strikes in the US apareció primero en T21.