supply chain

Recent strikes occurring at Amazon warehouses highlight the most recent series of supply chain challenges facing companies this holiday season, as reported by CNBC. Labor disputes, which had been a centerpiece of trade disruptions throughout 2024, are expected to continue causing global shipping complications over the year ahead. Teamsters union members are organizing worker actions at Amazon as a potential strike looms by dock workers at 36 ports along the U.S. East and Gulf Coast.

According to Mike Short, president of global forwarding at C.H. Robinson, there's been a 280 percent rise in strike activity in 2023 compared to previous years, and they are preparing shippers for a possible port strike in January. Industries like automotive and pharmaceuticals, which depend on just-in-time inventory, should implement contingency plans for possible future labor unrest.

A major labor disruption could happen by mid-January, with a deadline on January 15 for an agreement on automation at East and Gulf Coast ports between U.S. ports and the International Longshoremen’s Association. Talks have recently stalled again, while President-elect Donald Trump supports the union's stance against port automation.

Maersk, a major player in the global shipping industry, urged clients to prepare to move containers off terminals before any disruptions — and also to avoid issues with accessing cargo if a terminal closes. In recent years, the logistics sector has dealt with "black swan" events like COVID-19, which severely impacted the global supply chain. The pandemic prompted the development of digital solutions to track trade and improve communication, which are crucial for handling trade disruptions.

Andrew Petrisin, deputy assistant secretary for Multimodal Freight at the U.S. Department of Transportation, developed the digital supply chain monitoring platform, Freight Logistics Optimization Works (FLOW), back in 2022. The platform, which includes 86 partners, helps provide a comprehensive view of trade, track trends, and identify supply chain strengths and weaknesses.

As of today, 75 percent of U.S. container imports and 80 percent of terminal capacity are monitored via FLOW — including major logistics providers, retailers, and carriers. The platform enables real-time monitoring of shifts in cargo or port congestion due to unexpected events such, as the collapse of the Baltimore Bridge.

FLOW serves as a disruption response tool, enabling participants to make informed decisions regarding inventory and cargo movements during congestion. Petrisin believes FLOW will continue to play a significant role in transportation despite his departure from the DOT when Trump administration begins. Looking ahead, his office intends to launch the National Multimodal Freight Network in early 2025 to enhance freight transportation efficiency.

Petrisin emphasized that the ongoing strikes at Amazon are beyond the direct involvement of the DOT, but the office supports making sure U.S. ports are competitive and that workers are fairly compensated. The future of the FLOW initiative and public-private partnerships in transportation funding remains supported by both political parties.