How long will it take the supply chain to normalize after dockworkers strike?
Former Toys«R»Us CEO Gerald Storch joins ‘Cavuto: Coast to Coast’ to weigh in on the dockworkers’ tentative 90-day agreement.
Unionized dockworkers suspended their strike at East and Gulf Coast ports on Thursday night until mid-January, but it will take some time for impacted ports to return to their normal operations due to the backlog that accumulated during the strike.
The International Longshoremen's Association (ILA) and its roughly 45,000 dockworkers were on strike for roughly three days before they reached a tentative deal with the U.S. Maritime Alliance (USMX), which represents port employers. The deal, which will have to be ratified by both sides before Jan. 15, would see dockworkers' pay rise by 62% over the new contract though the two sides need to negotiate issues related to automation.
While negotiations play out, port operators and dockworkers will begin the process of dealing with the impact of the strike on East and Gulf Coast ports as they deal with backlogged cargoes – which will likely take several weeks before the supply chain returns to normal.
«More or less, we're looking at this as a 1-to-5 factor ratio, so for every one day of shutdown it takes five days of recovery,» Douglas Kent, EVP of corporate and strategic alliances at the Association for Supply Chain Management (ASCM), told FOX Business in an interview prior to the strike.
DOCKWORKERS' UNION REACHES TENTATIVE AGREEMENT, WILL SUSPEND PORT STRIKE UNTIL JANUARY
Ports on the East and Gulf Coasts are reopened following the suspension of the ILA dockworkers strike. (Photographer: Mark Felix/Bloomberg via Getty Images / Getty Images)
Kent explained that the delays in offloading inbound cargo creates a ripple effect that «keeps going backwards
Read more on foxbusiness.com
