More disruption for North American supply chains

North America’s freight market is navigating a turbulent period as labour disputes, arguments over automation, and the threat of rising tariffs converge to create significant operational challenges.

With critical negotiations breaking down and ongoing port disruptions, shippers face mounting uncertainty during peak shipping periods.

Canadian port strikes over but delays widespread
Labour disputes have hit Canadian ports hard, with operations on both the east and west coasts paralysed for weeks. A lockout at the Port of Montreal, triggered by failed negotiations between the Maritime Employers Association (MEA) and the Longshoremen’s Union, halted activity, while stalled talks between the International Longshore and Warehouse Union (ILWU) and port authorities have left Vancouver and Prince Rupert severely backlogged.

These disruptions forced freight diversions to US west coast ports, including Seattle, Los Angeles, and Long Beach, compounding congestion and extending delays.

Although the Canadian government intervened on 12th November, imposing binding arbitration to end the strikes, the recovery process will take weeks as ports work through the backlog.

Automation debate stalls US east and Gulf coast port negotiations
On the US east and Gulf coasts, tensions remain high following the International Longshoremen’s Association (ILA) decision to break off negotiations with the United States Maritime Alliance (USMX) on 11th November. The talks collapsed over USMX’s push for automation and semi-automation, which the ILA has strongly opposed, citing threats to job security and productivity.

While USMX has emphasised the need for modernisation to meet supply chain demands, the ILA argues that automation has failed to match the efficiency of skilled workers at ports. This disagreement raises the risk of further disruptions as the 15th January 2025 deadline for a new master contract approaches. Shippers are already expediting shipments to mitigate potential delays, exacerbating capacity constraints at key ports.

Trade policy shifts heighten volatility
Adding to the uncertainty, proposed changes to US trade policy under the new administration could significantly impact North American supply chains. Tariffs of up to 60% on Chinese goods and 20% on imports from other nations may trigger a surge in shipments as businesses front-load orders to avoid higher costs. This pre-inauguration rush is expected to coincide with the pre-Lunar New Year peak, further straining port capacity and logistics networks.

The combination of labour disputes, automation debates, and trade policy shifts highlights the need for proactive strategies to maintain supply chain stability. Sharing forecasts with us, so we can secure space will be critical to navigating these challenges.

For tailored solutions to protect your North American freight operations and ensure supply chain resilience, EMAIL Colin Redman today.