(Reuters) -Some 45,000 union workers walked off the job at seaports on the U.S. East and Gulf Coasts on Oct. 1, cutting off vital trade arteries just weeks ahead of the nation’s presidential election.

The International Longshoremen’s Association (ILA) union, which represents dockworkers across 36 ports on the U.S. East Coast and the Gulf of Mexico, remains deadlocked with the United States Maritime Alliance (USMX) employer group on wage issues.

The stoppage is the first coast-wide ILA strike since 1977 and halts the flow of about half the nation’s ocean shipping. A two-week strike could mean that ports would not return to normal operations until 2025, according to Sea-Intelligence, a Copenhagen-based shipping advisory firm.

Here is what global companies and stakeholders have said regarding a potential strike:

Costco U.S. retailer Costco’s contingency plans

Wholesale  include pre-shipping some products to get in

holiday goods early and preparing to use

different ports, Costco’s CEO Ron Vachris

said last week.

Maersk  The Danish shipping and logistics giant said

on Sept. 30 a longer dispute may exacerbate

disruptions, affecting import and export

activities, container availability, and

overall operational efficiency.

The company has said it will introduce a port

disruption surcharge on all cargo moving to

and from the U.S. East Coast and Gulf Coast

terminals from Oct. 21 ranging from $1,500 to

$3,780 a container.

C.H. Robinson “We have been working on contingency plans

with customers for months, helping them

import freight early and diversify freight to

other ports,” Mia Ginter, director of North

American shipping, told Reuters. A

significant volume shift to the West Coast

could challenge rail services, requiring more

use of truck and transload services, Ginter

added. 

Maher Maher and Maersk’s APM, which are members of

Terminals and the employer negotiating group (USMX), said

APM Terminals they were keeping their terminals at the Port

of New York and New Jersey open for two

additional hours to clear cargo before the

potential strike.

Garden City The Garden City Terminal at the Port of

Terminal and Savannah and the Norfolk International

Norfolk Terminal at the Port of Virginia have also

International extended their gate hours for the weekend

Terminal before Sept. 30 to clear cargo.

Hapag-Lloyd The shipping giant has said it is closely

monitoring the strike situation and will keep

customers involved as developments unfold.

Andreas Stihl The German chainsaw manufacturer Andreas

AG & Co Stihl AG & Co told Reuters it is also

developing contingency plans to keep exports

flowing from its factory near the Port of

Virginia, but didn’t elaborate. Stihl’s U.S.

plant ships products to over 80 countries.

Designer Ronnie Robinson, chief supply chain officer

Brands at DSW parent company Designer Brands, said

the company has shifted half of its usual

imports through the East Coast to the West

Coast. Robinson added that his company cannot

risk late deliveries to clients like Macy’s,

Nordstrom, and Dillard’s department stores,

even if it means paying more for shipments. 

National NAM CEO Jay Timmons said a strike would throw

Association of manufacturing supply chains throughout the

Manufacturers U.S. into disarray. “Billions of dollars of

goods – from food to vehicles to electronics

– rely on access to the East and Gulf Coast

ports,” Timmons said on Monday. 

Inter IKEA, “We are closely monitoring the situation and

which makes hope for an agreement between the parties as

IKEA furniture soon as possible. It is too early to comment

on any possible constraints the strike might

have on our supply chain.”

McCormick & The company said it co-ordinated mitigation

Company plans with domestic suppliers with inbound

supply coming from outside U.S.

National The retailer group urges U.S. President Joe

Retail Biden to use all available authority, tools

Federation including Taft-Hartley act, to immediately

restore operations at all impacted container

ports, get the parties back to the

negotiating table and ensure there are no

further disruptions

BNSF Railway The railroad said it was carefully monitoring

the situation with the East and Gulf Coast

ports and was fully prepared for any shifts

in demand for rail service, adding that its

local teams continue to work with its

terminal operators on the specific needs to

meet the demands of their facilities.

Walmart The retailer said it has prepared for

unforeseen disruptions in its supply chain

and maintains additional sources of supply to

ensure it has key products available for its

customers when and how they want them.

U.S. The department said it does not expect

Department of shortages anytime in the near future for most

Agriculture items and adds it is keeping an eye on

downstream impacts in west, and will continue

to monitor and work with industry to respond

to potential impacts.

Merit Medical The medical device maker’s CEO Fred

Systems Lampropoulos said the company anticipated the

strike and switched a portion of its shipment

to air transport before July.

CSX The railroad said it has been flexible,

adding service in collaboration with western

partners to provide customers with

alternative options to West Coast ports.

Ahold Delhaize The owner of the Food Lion and Hannaford

grocery chains said it has been preparing for

the situation and remains in close dialogue

with suppliers, including local ones, to

ensure stores are stocked. It expects minimal

impact on its supply chain for now.

(Reporting by Abhinav Parmar and Ananta Agarwal in Bengaluru; additional reporting by Christy Santhosh and Gianluca Lo Nostro; Editing by Alan Barona, David Evans, Anil D’Silva and Milla Nissi)

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