Five Impacts of Transportation Strikes on Supply Chains

In transportation and logistics, labor issues are among the top three threats to the smooth flow of goods. Long hours, stressful conditions, and an aging workforce puts pressure on workers. Filling empty positions in the  sector is tough. This tight labor supply bolsters unions to demand better conditions and compensation.  

Worker grievances also include work safety, health benefits, and schedules, including more paid time off. Calls to remove COVID-19 vaccine mandates, or to improve workplace protection from the pandemic, were also a catalyst for transportation strikes.  

Among the impacts on supply chains during logistics and transportation strikes are delivery delays, and rising shipping costs, which all affect your bottom line. When you can’t get the parts you need, nor deliver the goods you produce, loss of revenue, contract fines, and damage to reputation are just some of the consequences:

Fragile transportation supply chains and instable logistics hubs are easily disrupted by labor issues. The US, UK, France, South Korea, Spain are among the countries recently hit by transportation strikes. All modes of transport were affected: air, rail, road, ports and shipping. Instances and consequences include: 

Airport strikes

Mid-year strikes by pilots and ground crews caused flight cancellations and chaos in Europe and the US. The situation was made worse by the scramble for staff amid surging demand for flights. As commercial flights carry substantial cargo shipments, cancellations from airport strikes also affect air-freight space and rates.

Rail strikes

Massive rail strikes continue to threaten rail freight in the US. Work stoppage could shock supply chains and “cripple the economy,” potentially costing $160 billion per day.  Consumers may not immediately feel the effects, yet heavy industry relies on railways. 

Truckers strikes

Remember the blockades on the US-Canadian border? Truckers protesting the coronavirus vaccination mandate barricaded border crossing, including Ambassador Bridge. The bridge between Detroit, Mich., and Windsor, Ontario carries 25% of all trade between the U.S. and Canada.  

Losses totaled some $1 billion per day. Deliveries of critical car parts were delayed for nearly a week. Elsewhere, truck drivers in Australia, UK, EU, in Spain, France went on strike for better pay and conditions. In South Korea, high fuel costs prompted independent truckers to protest for a guaranteed minimum wage.

With The riskmethods Solution^TM AI-based supply chain risk management, you can prepare your supply chain for strikes. Take action before it’s too late. Using 24/7 monitoring, you quickly learn of union protests and transportation strikes at hubs such as ports, as well as supply paths. Then you can use an alternative means of delivery or transport route. Or you might order from a supplier based in a different region.  

Supply chains in logistics and transportation are also vulnerable to other types of risk. Cyber, man-made, financial, reputational, or natural hazard events all threaten to interrupt the flow of goods. Get a total view of risk and be prepared. Go the last mile and deliver the goods when your competitors cannot.