There are 45,000 dock workers on strike. Here’s how global companies are responding

About 45,000 unionized workers walked off the job at ports on the US East and Gulf Coasts on Oct. 1, they cut off important trade arteries just weeks before the country’s presidential election.

The International Longshoremen’s Association (ILA), which represents dock workers at 36 ports on the US East Coast and the Gulf of Mexico, remains locked with employers’ group the United States Maritime Alliance (USMX) over wages.

The stoppage is the ILA’s first coast-wide strike since 1977 and halts nearly half of the nation’s sea travel. The two-week strike could mean the ports won’t return to normal operations until 2025, according to Sea-Intelligence, a Copenhagen-based shipping consultancy.

Here’s what global companies and stakeholders have to say about the possible strike:

Costco Wholesale

US retailer Costco’s emergency plans include pre-shipping some products to get holiday goods in time and preparing to use different ports, Costco CEO Ron Vachris said last week.

Maersk

The Danish shipping and logistics giant said on September 30 that the prolonged dispute could increase disruptions, affecting import and export operations, container availability, and overall efficiency.

The company said it will introduce an additional port disruption fee on all cargo going to and from US East Coast and Gulf Coast terminals starting Oct. 21 ranging from $1,500 to $3,780 a container.

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“We’ve been working on emergency plans with Robinson’s customers for months, helping them bring in cargo early and separate it from cargo going to other ports,” Mia Ginter, director of logistics for North America, told Reuters. A significant volume shift on the West Coast could be a challenge for rail services, requiring increased use of trucking and freight services, Ginter added.

Maher Terminals and APM Terminals

Maher’s APM and Maersk, which are members of the Terminals employers’ negotiating group (USMX), said APM is also keeping its terminals at Port Terminals in New York and New Jersey open two extra hours to clear cargo ahead of a possible strike.

Garden City Terminal and Norfolk International Terminal

The Garden City Terminal at the Port of Savannah and the Norfolk International Terminal at the Port of Virginia also extended their gate hours the weekend before Sept. 30 to clear cargo.

Hapag-Lloyd

The shipping giant said it was closely monitoring the strike situation and would keep customers engaged as it unfolded.

The company Andreas Stihl AG & Co

German chainsaw maker Andreas Stihl AG & Co told Reuters it was also making emergency plans to keep exports flowing from its plant near the Port of Virginia, but did not elaborate. Stihl’s US plant exports products to more than 80 countries.

Designer Brands

Ronnie Robinson, CEO of DSW’s parent company, Designer Brands, said the company has shifted half of its regular purchases from the East Coast to the West Coast.

Robinson added that his company can’t risk late deliveries to customers like department stores Macy’s, Nordstrom, and Dillard’s, even if it means paying more for shipping.

National Association of Manufacturers

NAM CEO Jay Timmons said the strike would disrupt production chains across the US. “Billions of dollars in goods – from food to cars to electricity – rely on access to Eastern and Gulf Coast ports,” Timmons said Monday.

Inter IKEA, which makes IKEA furniture

“We are closely monitoring the situation and we hope that there will be an agreement soon between the parties. It is too early to comment on any issues that the strike may have on the exchange of our goods.”

-Abhinav Parmar and Ananta Agarwal, Reuters