The Cost of Being Unprepared

Port strikes have long been a significant disruptor to global supply chains, halting the flow of goods and causing massive financial losses. This year’s East Coast port strike is no different. History shows us how damaging such disruptions can be, as seen during the 1971 West Coast Port Strike and the 2002 West Coast Port Lockout. Both of these events revealed the fragility of supply chains and how unprepared companies suffered the consequences. Now, with the holiday season around the corner, companies need to take action to protect their operations, minimize losses, and ensure their goods reach consumers on time. 

Learning from History: The Cost of Being Unprepared 

Let’s take a look at what happened during the 1971 West Coast Port Strike. The strike lasted an incredible 134 days, bringing shipping to a halt across all West Coast ports. One of the hardest-hit sectors was California’s citrus industry, particularly companies like Sunkist Growers. As a major exporter of oranges and lemons, Sunkist experienced devastating losses. Their perishable goods were left stranded at the docks, waiting for shipping routes to reopen. By the time the strike ended, millions of dollars in produce had been wasted, and international markets that relied on U.S. citrus were left with shortages. The lesson here is simple: when a strike occurs, companies dealing with perishable goods are among the first to feel the pain, and the losses add up quickly. 

Even shorter strikes can have long-lasting consequences. During the 2002 West Coast Port Lockout, which lasted just 11 days, the impact was still severe. More than 200 container ships were left stranded at sea, creating a massive backlog in ports that took months to clear. Industries with fast inventory turnover were hit especially hard. Companies faced delays in receiving critical goods, which had a ripple effect on their production schedules and sales, particularly as the holiday season approached. It didn’t matter that the strike was relatively short; the consequences lasted for months. 

The Current Strike and Perishable Goods at Risk 

Fast forward to today, and we are facing similar challenges with the ongoing East Coast port strike. As the strike progresses, perishable goods such as fruits, vegetables, and temperature-sensitive products are once again at risk. Just like Sunkist in 1971, businesses that rely on timely shipments of perishable items will see losses pile up quickly as products spoil. 

Reports indicate that 38 container vessels were already backed up at U.S. ports, a sharp increase from just three vessels on Sunday before the strike began. Additionally, the ports of Long Beach and Los Angeles have seen an 18% increase in volume over the past month, further intensifying the congestion as the strike continues to disrupt normal operations.

One of the main issues for companies dealing with perishables is that not everyone has the option to switch to air freight, which is significantly more expensive. Air transport may work as a short-term solution for high-value goods or critical items, but for most companies, it’s simply not financially viable. This means that many businesses are forced to sit and wait for the strike to end, while their products decay and their revenue suffers. 

It Doesn’t Matter How Long the Strike Lasts 

What’s important to understand is that it doesn’t matter whether the strike lasts a few days, several weeks, or months. The reality is that even the shortest disruptions can have far-reaching impacts on businesses. The longer the strike goes on, the bigger the backlog at the ports, and cascading impacts across other parts of the supply chain which leads to significant delays in the shipping process even after operations resume. Companies that haven’t prepared for such disruptions will struggle to recover, facing inventory shortages and lost revenue. 

In fact, supply chain experts predict that any prolonged port strike could drastically interrupt the flow of goods across the United States, causing price hikes and creating delays that could stretch well into the holiday season. This would be particularly damaging for industries like retail, where holiday sales account for a significant portion of yearly revenue. 

Preparing for the Next Disruption 

The good news is that it’s easier than ever to be prepared for such disruptions, thanks to advancements in technology. Today’s supply chains are more connected and data-driven than ever before, and companies have access to a range of tools that can help them minimize losses and keep operations running smoothly. The key is to leverage these technologies in a way that allow you to be proactive,  

First and foremost, businesses need to invest the intelligence layer for their visibility tools. The intelligence layer turns data from IoT devices, loggers, and sensors into actionable insights. Businesses gain more than just a clear view of where goods are—they gain the ability to make smarter, data-driven decisions. The result is a more resilient, efficient, and proactive supply chain. 

Additionally, diversifying supply chains is crucial. Companies that rely on a single port or transportation route are much more vulnerable to disruptions. By using Decision Intelligence to diversify their logistics networks—using multiple ports, different shipping methods, and even alternative suppliers—businesses can spread the risk and ensure they’re not completely reliant on any one part of the supply chain. 

How Do You Get Ahead of the Next Port Strike? 

To stay ahead of future port strikes or other disruptions, businesses need to be proactive. First, review your supply chain strategy and identify any potential weak points. Are you too reliant on a specific port or transportation method? Do you have backup suppliers or alternative shipping routes in place? If not, now is the time to start building resilience into your supply chain. 

Second, invest in technology that not only provides visibility but also gives you greater control over your operations. Tools like IoT devices and GPS trackers can feed real-time data into decision intelligence platforms, allowing you to turn that raw data into strategic insights. With an intelligence layer, you can proactively identify potential delays and adjust shipments or inventory levels before problems escalate. This approach helps you stay ahead of disruptions and gives you a competitive edge by enabling smarter decisions throughout your supply chain. 

Finally, plan for the unexpected. The truth is, port strikes are just one of many potential disruptions that can impact your supply chain. Natural disasters, labor shortages, geopolitical issues, and even cyberattacks can all cause delays. By creating contingency plans and building flexibility into your logistics operations, you’ll be better prepared to handle whatever challenges come your way. 

How CONTXT Can Help 

If your company already uses loggers, sensors, or data-monitoring devices, you’re collecting valuable information—but how are you using it? That’s where CONTXT, our decision intelligence platform, comes in. CONTXT takes the data you’re already collecting and turns it into actionable insights. Whether it’s tracking the condition of perishable goods or monitoring real-time delays in your supply chain, CONTXT helps you make smarter, faster decisions that keep your operations running smoothly, even during disruptions. 

Don’t wait for the next strike or supply chain crisis to hit—start preparing now. With the right tools and strategies in place, you can minimize risk, protect your goods, and ensure your business is ready for whatever comes next. Contact us today to discover how you can transform your supply chain into a resilient, data-driven powerhouse that adapts to any challenge before it impacts your business. Let’s build a smarter, more agile future together.