International ocean freight shipping services, offered by 3PL companies, are relied on by companies in most industries of the world. Many businesses rely on open ports and efficient ocean logistics to continue commercial activities as freight shipping by sea consists of over 80% of world trade (Review of Maritime Transport 2022 | UNCTAD). Port strikes, however, have a profound impact on global sea freight shipping, disrupting not only the flow of goods but also creating significant challenges for businesses reliant on ocean freight shipments. The recent U.S. port strikes, driven by longshoremen’s demands for higher wages and resistance to port automation, brought these issues to the forefront.
While the strikes have been resolved, the ripple effects still linger, particularly for businesses that relied on key East and Gulf Coast ports. Disruptions in ocean freight operations resulted in delayed shipments across various sectors—food, automotive, pharmaceuticals, and electronics—and created bottlenecks in global supply chains. Even though the strikes have ceased, the aftermath still poses challenges for companies that need to catch up on shipments and
At Logic-ology, we understand how important it is to maintain a seamless flow of goods, and we are committed to offering logistics solutions to help businesses navigate these disruptions. From delays in customs clearance to potential ocean freight rate increases, port strikes present many obstacles for companies engaged in international trade.
Here we’ll outline what sort of goods were affected by the recent port strikes, whether the closure of U.S. ports has an impact on Canadian supply chains, and whether sea freight shipping rerouting would be possible through Canadian ports.
What Goods Would Be Affected by Port Strikes?
Port strikes in the USA are particularly disruptive for goods transported through ocean freight shipping services, impacting key sectors such as food, machinery, pharmaceuticals, and electronics.
Fruits and fresh produce, such as bananas, are some of the most immediately affected items. About 75% of U.S. banana imports come through East and Gulf Coast ports, making this supply chain highly vulnerable to delays (See how the port strike will snarl shipments of bananas, beer, cars, and more | Washington Post). Fruits like bananas are highly dependent on international freight shipping services, and delays caused by the strikes could lead to significant spoilage, raising costs and reducing availability. As one of the most consumed fruits in North America, bananas are often imported via East Coast ports, which means any disruption in these trade lanes creates a domino effect throughout the food supply chain.
Machinery, vehicles, and pharmaceuticals are equally vulnerable. The machinery and automotive industries rely heavily on a steady influx of parts and equipment to maintain operations. Delays in receiving these essential goods could slow down manufacturing and increase costs. Similarly, the pharmaceutical sector, which depends on timely imports of chemical medicines and medical equipment, risks supply shortages that could affect healthcare providers and patients.
Electronics, household items, and other commercial cargo shipped via standard containers could also face delays. These goods are often transported through ocean shipments and any disruption in port operations could create backlogs, leading to longer transit times and increased ocean freight costs. The ripple effect of these delays could be felt by retailers and consumers alike, particularly during peak seasons like the holidays, when demand for such goods is highest.
Do Port Strikes in the USA Affect Canada?
U.S. port strikes have a direct impact on Canadian supply chains. Since both the U.S. and Canada are deeply interconnected through international trade, any disruption to U.S. ports could lead to delays in goods traveling between the two countries. Many Canadian businesses rely on ocean freight shipping to U.S. ports to receive imports from overseas or to export goods to international markets.
Although Canada’s ports, such as Vancouver, Montreal, and Halifax, could serve as alternatives, rerouting ocean freight shipments through Canadian ports may create its own set of challenges. Increased demand could overwhelm Canadian ports, leading to congestion, higher shipping costs, and longer transit times. The ripple effect from port strikes in the USA could thus slow down the supply of critical goods to Canada and increase costs for businesses that rely on cross-border trade.
Ocean Freight Shipping Possible Reroutes USA to Canada
Through 3PL logistics companies rerouting global ocean freight shipments through Canadian ports might be possible and businesses could mitigate some of the delays caused by U.S. port closures. For instance, companies could divert shipments originally destined for U.S. ports to enter North America through Vancouver or Halifax, before being transported to their final U.S. destinations via inland transportation networks.
For U.S. companies, rerouting ocean freight services through Canada might be necessary to ensure the continuity of their supply chains. Instead of waiting for a port strike to end, companies could ship their goods into Canada and then transport them via road or rail into the United States. This rerouting of ocean freight shipping services would help businesses avoid congestion at U.S. ports, but it could also raise shipping costs and increase transit times.
Our extensive network of partners at Logic-ology, allows us to offer flexible solutions during these challenging times. Through our connections with Canadian ports, we can ensure that our client’s goods can move through alternative trade lanes, minimizing disruptions and keeping supply chains functional.
International Ocean Freight Shipping with Logic-ology, a 3PL Company
At Logic-ology, as a 3PL company, we provide ocean freight shipping for businesses across Canada, the USA, and overseas. Our expertise in ocean freight shipping allows us to offer cost-effective solutions that ensure timely deliveries and excellent, knowledgeable customer service.
Whether you need assistance with logistics management, freight forwarding, or navigating the wavy waters of ocean freight, our experienced team is here to guide you through every step of the process. We offer additional services such as warehousing, transit time optimization, and cross-border logistics to meet all our clients’ supply chain needs. Our team of logistics experts is well-versed in managing complex international trade, and we offer competitive ocean freight rates to meet your shipping needs.
In addition to ocean freight shipping, Logic-ology also offers intermodal rail freight shipping and long-haul trucking services, ensuring that our clients have access to the most efficient modes of transport for their goods. Whether you’re shipping commercial cargo, high-value goods, or time-sensitive items, we have the resources and expertise to provide flexible, cost-effective methods for your supply chain.
As part of the Stryder Group of Companies, ensure your supply chain stays resilient and uninterrupted with Logic-ology’s international ocean freight shipping services!
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