How Businesses Can Prepare for Future Port Strikes: A Guide to Safeguarding Supply Chains

The recent port strike negotiations in the U.S. have raised concerns about the impact of potential labor disputes on supply chains. As businesses worldwide rely on ports for transporting goods, the threat of disruptions looms large. Whether you’re a retailer, manufacturer, or any business with international shipping needs, it’s crucial to understand how to mitigate the risks posed by port strikes and ensure your operations remain unaffected.

In January 2025, the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) reached a tentative agreement, staving off a major strike that could have crippled U.S. ports and caused widespread economic disruption. However, while the agreement prevents immediate disruption, the possibility of future port strikes remains ever-present. It’s important for businesses to plan ahead and safeguard their supply chains from such potential disruptions.

Here’s how businesses can prepare for future port strikes to minimize risk and maintain operations.

1. Diversify Your Supply Chain

One of the most effective ways to protect your business from the impact of a port strike is by diversifying your supply chain. Relying on a single port or shipping route for all your products increases vulnerability. By exploring alternative ports or regional distribution hubs, you can mitigate the risks posed by potential labor disputes at any specific location.

For example, many companies have already expanded their logistics operations to utilize smaller ports or shipping routes that are less likely to be impacted by a strike. Additionally, establishing relationships with suppliers across different regions allows for flexibility when disruptions occur, ensuring that your supply chain isn’t dependent on just one location.

2. Invest in Technology and Real-Time Tracking

Technology has revolutionized supply chain management, offering businesses real-time visibility into their shipments. By utilizing platforms that track the status of shipments and monitor port activity, businesses can stay updated on potential delays and disruptions.

Through predictive analytics and automated alerts, companies can anticipate problems before they occur and adjust logistics plans accordingly. If a strike or slowdown occurs, real-time tracking allows businesses to reroute goods, communicate with suppliers, and adjust timelines promptly, preventing unnecessary delays in production or delivery.

3. Establish Contingency Plans

Every business should have a contingency plan in place in case of a port strike or similar disruption. This plan should outline clear strategies for managing inventory shortages, production delays, and shipping issues.

For example, businesses can build up a larger-than-usual stockpile of critical inventory in anticipation of possible shipping disruptions. By maintaining higher levels of inventory during peak periods or before contract negotiations, you can avoid a situation where a strike leads to significant shortages or delays.

It’s also wise to have pre-arranged contracts with alternative shipping partners. Should a strike occur, you’ll already have an established plan to pivot to different transportation options like air freight, rail, or trucking, depending on the nature of the disruption and your specific needs.

4. Foster Strong Relationships with Key Stakeholders

Another critical strategy in preparing for port strikes is fostering strong relationships with key stakeholders, including suppliers, logistics providers, and even port authorities. Open communication channels can make all the difference when a disruption is imminent.

By engaging in proactive discussions with your suppliers, you can gain insight into their contingency plans and their ability to manage the strike’s impact. Similarly, logistics providers may have insights into potential delays, alternative routes, or the possibility of rerouting cargo, allowing your business to adapt quickly to changing circumstances.

Additionally, keeping a pulse on union negotiations and labor disputes within the ports allows businesses to stay ahead of potential problems. Monitoring the status of talks between port workers and employers (as seen with the recent January 2025 agreement) can give you early warning signs, allowing you to react ahead of time.

5. Review Your Contracts and Insurance Policies

In the event of a strike, businesses could face financial losses due to delayed shipments or missed delivery deadlines. As such, it’s essential to review your contracts and insurance policies to ensure you’re covered in the event of a disruption.

Many companies include clauses in their contracts that address the potential for force majeure events (such as strikes) that can delay fulfillment. Understanding how your business is protected, and reviewing your insurance policies to ensure adequate coverage for supply chain disruptions, can help protect you from significant financial loss.

6. Stay Informed About Labor Negotiations

Understanding the intricacies of port labor negotiations is vital for staying ahead of potential disruptions. While you may not be able to control the outcome of a strike, staying informed about the status of ongoing talks between port workers and employers can give you time to prepare.

The recent tentative agreement reached in January 2025 avoided an immediate strike, but it’s important to keep an eye on the next round of negotiations and how they might affect your supply chain. Businesses that stay informed are better positioned to make quick, informed decisions to adjust their logistics and minimize disruptions.

7. Build Flexibility into Your Operations

Flexibility is key when dealing with potential disruptions, such as a port strike. Building flexibility into your business model allows you to adapt to challenges more quickly and with less impact.

This can mean diversifying your transportation methods, utilizing multiple distribution channels, or even considering near-shoring some of your production to reduce reliance on overseas suppliers. Having multiple avenues to source and distribute goods ensures that you are not entirely reliant on any one system or location.

The Importance of Being Proactive 

Port strikes can have a significant impact on global supply chains, but businesses can take steps to prepare and protect themselves. By diversifying supply chains, investing in technology, establishing contingency plans, and staying informed, you can minimize the risks and ensure your operations continue smoothly even in the face of disruption. Proactive preparation is the key to navigating the uncertainties of the global logistics landscape.

As the potential for future labor disputes continues to loom, businesses must stay ahead of the curve to safeguard their operations. By doing so, they can avoid the severe consequences of port strikes and emerge more resilient than ever.