Navigating the East Coast Port Strike: How eCommerce Businesses Can Thrive Amid Disruption
If you’re in the eCommerce or retail business, you’ve probably heard the rumblings: the East Coast port strike is ramping up. Industry experts estimate that a one-week strike could cost the U.S. economy a staggering $3.78 billion. If the strike extends over multiple weeks, we could be looking at $3-4 billion in lost commerce per day. Combine this with the unpredictability of hurricane season, and it’s clear that this holiday sales period could be a rollercoaster—especially for sectors like apparel, electronics, and home goods that heavily rely on these ports for imports.
But before you start bracing for impact, remember that while we can’t control port strikes or the weather, we can control how we respond. Over the past few years, we’ve all become a bit too familiar with supply chain disruptions. It’s been tough, no doubt about it. But these challenges have also taught us valuable lessons about resilience and adaptability.
So, let’s talk strategy. Here are some practical steps your eCommerce or omni-channel business can take right now to navigate this turbulent landscape.
1. Get Creative with Your Imports
Diversify Your Routes
As the COVID-19 pandemic showed us, there are multiple ways to route your cargo when traditional methods are off the table. If you usually import to New York and then move goods to your warehouse in Pennsylvania, consider alternative ports like Tacoma. From there, you can transport your inventory by rail to your warehouse. Yes, it might be a bit more expensive upfront, but ensuring your shelves are stocked could outweigh the extra per-unit import costs.
Leverage Multiple Warehouses
If you operate multiple warehouses and outbound shipping isn’t a significant cost factor—say, if you primarily sell wholesale and your customers handle pickup—you might opt to bring inventory into facilities unaffected by East Coast disruptions. Should you need extra capacity to manage this shift, explore flexible 3PL (Third-Party Logistics) options that offer temporary inventory accommodation and fulfillment services.
Consider Air Shipments for High-Value Goods
Air freight is undoubtedly more expensive—about ten times the cost of ocean shipping. However, for light and high-margin items, it might be a viable option. The upside? Drastically reduced lead times mean you can maintain your service levels without tying up capital in inventory that’s stuck in transit.
2. Enhance Your Supply Chain Agility
Balance Your Inventory
Outbound shipping costs and inventory capacity can become significant pain points during disruptions. To mitigate this, balance your inventory by transferring stock between warehouses to position products closer to your customers. This strategy not only protects your margins by utilizing bulk shipping options but also maintains service levels, ensuring your customers aren’t left waiting.
At FlexChain, we’ve developed a turnkey inventory transfer builder that quickly assesses and creates optimal transfer loads, whether LTL (Less Than Truckload) or FTL (Full Truckload). Tools like these are a game-changer for effectively navigating disruptions.
Optimize with Zone Skipping
If you find yourself fulfilling orders from warehouses that aren’t ideally located—leading to higher shipping costs—consider parcel zone skipping. This involves assessing parcel orders for opportunities to handle the middle-mile shipping in bulk, then transferring parcels to local carriers closer to the end customer. The result? Significant cost savings and faster delivery times.
You can learn more about parcel consolidation and zone skipping here, but the key takeaway is to explore options that allow you to ship smarter, not harder.
3. Shape Customer Demand
This strategy requires a bit of teamwork across departments—think supply chain, marketing, sales, and merchandising.
Promote Available Inventory
If certain products are at risk due to import delays, shift focus to items that are well-stocked or overstocked. Use email campaigns, social media promotions, and website banners to highlight these products. Adjust pricing or offer special deals to make them more enticing. This not only helps move existing inventory but also keeps your customers engaged and satisfied.
Flexible Marketing Strategies
In times of uncertainty, flexibility is your friend. Be prepared to pivot your marketing strategies based on inventory levels and supply chain updates. Regular communication between your teams will ensure everyone is on the same page and can react swiftly to changes.
Bonus Tip: Think Long-Term with Localized Supply Chains
While immediate actions are crucial, it’s also worth considering long-term strategies to mitigate future disruptions.
Explore Nearshoring Options
Shifting your supply base closer to home—whether that’s the USA, Canada, or Mexico—can offer several advantages:
• Reduced Port Reliance: Localizing your supply chain means less dependence on international ports, giving you more flexibility with transportation modes like trucking and rail.
• Shorter Lead Times: With suppliers closer geographically, lead times can be reduced by 50-60%, allowing for quicker restocks and a more responsive supply chain once the bottlenecks have cleared up.
Build Resilience
By diversifying your supply chain geographically, you build resilience against global disruptions. It’s not a small undertaking, but the long-term benefits can be substantial.
Final Thoughts
Navigating supply chain disruptions is no small feat, but with proactive strategies and a willingness to adapt, your eCommerce business can not only survive but thrive amid the chaos. The key is to stay informed, be flexible, and think creatively about how to meet your customers’ needs despite the obstacles.
If you have questions or need guidance on implementing any of these strategies, don’t hesitate to reach out to industry experts or consult with your logistics partners. Collaboration and knowledge-sharing can make all the difference during challenging times.
At FlexChain Holdings, we’re committed to supporting businesses through supply chain challenges with innovative solutions and expert advice. Feel free to contact us to discuss how we can assist you in optimizing your operations.
