Olin Expert: Strike tests U.S. supply chain resiliency
- October 2, 2024
- By Sara Savat
- 1 minute read
Once again, the nation faces a potential supply chain shock—this time from a strike of 50,000 longshoremen that began September 30.
The strike by the International Longshoremen’s Association affects 36 ports on the Gulf and East coasts; more than half the U.S. container shipping trade goes through these ports.
How will the strike affect supply chains and prices? Have manufacturers and retailers learned anything from previous supply chain disruptions, particularly those caused by COVID-19?
Panos Kouvelis, the director of the Boeing Center for Supply Chain Innovation at WashU Olin, warned that the strike could pose “a serious disruption for the U.S. supply chains.”
What we learned through the pandemic is that we forget complex systems depend on thousands of small and midsize retailers and suppliers that might not have planned ahead enough, either due to lack of funds or adequate expertise.
Panos Kouvelis
Update: Longshoremen returned to work on Friday, October 4, after the two sides reached agreement on wage increases. Learn more about the strike’s impact on consumer buying behavior in this St. Louis Post Dispatch article, which interviewed Fausto Gonzalez, Olin assistant professor of marketing.
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Sara Savat
Senior News Director, Business and Social Sciences