Growing threats to North American supply chains

Labour unrest, automation disputes, and trade policy shifts are intensifying pressure on US and Canadian supply chains.

With negotiations between unions and employers stalling and potentially massive import tariffs looming, businesses are grappling with operational disruptions and uncertainty during critical shipping periods.

Canadian port strikes add strain

Labour disputes in Canada have severely impacted port operations on both the east and west coasts. At the Port of Montreal, a lockout by the Maritime Employers Association (MEA) halted activity after talks with the Longshoremen’s Union broke down. Similarly, stalled negotiations between the International Longshore and Warehouse Union (ILWU) and port authorities have created significant backlogs at Vancouver and Prince Rupert.

These disruptions have diverted cargo to US west coast ports, including Seattle, Oakland, Los Angeles, and Long Beach, adding to congestion and creating delays. Although the Canadian government stepped in on 12th November with binding arbitration to end the strikes, recovery is expected to take weeks as ports work through backlogs to restore normal operations.

Automation disputes threaten US east and Gulf coasts

In the US, automation remains a contentious issue. Talks between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) collapsed on 11th November over proposals to include automation in their master contract. The ILA opposes automation, citing threats to job security and questioning its productivity compared to skilled workers.

The breakdown in negotiations has heightened concerns about potential disruptions on the US east and Gulf coasts, particularly as the January 2025 contract deadline approaches. Shippers will almost certainly be expediting shipments to avoid delays, adding further pressure to already congested ports.

Trade policy changes add complexity

The possibility of new US tariffs in early 2025 is creating additional uncertainty. Proposed duties of up to 60% on goods from China and 20% on other nations could lead to a surge in shipments as importers race to avoid higher costs. This rush may coincide with the pre-Lunar New Year peak, amplifying demand pressures across North American ports.

Meanwhile, geopolitical tensions continue to challenge global trade dynamics, compelling shippers to adjust their strategies to maintain supply chain continuity.

Planning for resilience in volatile times The North American freight market is entering a critical period of change and while Canadian ports are beginning to recover, ongoing labour disputes and trade policy shifts in the US present significant risks.

Strategic planning is essential to mitigate potential disruptions, particularly in the lead-up to key shipping deadlines. We can help you prepare contingencies to navigate these challenges while maintaining supply chain stability.

For tailored solutions to support your North American freight operations, DM Lewis Atkinson today for expert guidance and reliable logistics support.