How long will it take the supply chain to normalize after dockworkers strike?

Published On Oct 5, 2024, 9:31 AM

Dockworkers on the East and Gulf Coasts suspended their strike after three days, but it will take several weeks to clear the backlog caused during that period. Experts estimate a roughly 1-to-5 ratio for recovery time, meaning for each day of the strike, it will take about five days to return to normal operations. Shipping delays will affect various players in the supply chain, as cargo must be unloaded, transferred to trucks, and distributed, leading to a ripple effect of delays going backward through the chain. The supply chain normalization is expected to take approximately three weeks based on the strike duration and resulting backlog.

Stock Forecasts

Investment sentiment may improve as ports reopen and operations resume, potentially boosting sectors reliant on shipping and logistics.

Increased operational costs and delays may negatively impact companies heavily dependent on timely shipping and logistics.

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