US East Coast Port Strike Averted…but Challenges Remain

Dockworkers along the US East Coast officially went on strike on Tuesday after failing to reach a deal with the US Maritime Alliance but then resolved the strike late Wednesday. Thankfully this averts a holiday disaster but supply chain challenges remain with ongoing conflict in the Middle East one of the largest risks. On top of this, Chinese New Year is approaching which always poses challenges for logistics.

Impact on Amazon Sellers

Again, the East Coast port strike is resolved but other pressure could be put on supply chains. If conflict in the Middle East escalates (even more) it could create similar pressure to a port strike. Here are some potential impacts from logistics disruptions:

1. Severe Stock Shortages: Sellers could struggle to keep items in stock as incoming shipments are delayed or rerouted. This could lead to lost sales during Black Friday, Cyber Monday, and the overall holiday season.
2. Increased Shipping Costs: With limited port availability, shipping routes could become more expensive. Sellers may need to explore alternative ports, which could add logistical complications and costs, reducing their profit margins.
3. Delayed Deliveries: Even if sellers have inventory on hand, deliveries to customers could be delayed due to the strain on shipping networks. For sellers dependent on Amazon Prime’s quick delivery times, this could lead to customer dissatisfaction and negative reviews.

How to Avoid Potential Logistics Disasters

As an Amazon seller you can take proactive steps to mitigate potential supply chain disruptions including:

1. Stockpile Inventory: If possible, stock up on inventory early to ensure you have enough to last through the holiday season and beyond Chinese New Year. Having a cushion of stock could help avoid shortages if new shipments are delayed…it also helps avoid those low inventory fees.
2. Diversify Fulfillment: Sellers who rely on Amazon’s Fulfillment by Amazon (FBA) service should send inventory to Amazon warehouses early to ensure stock is available for the holiday rush. Those managing fulfillment themselves might want to explore using multiple carriers or alternative shipping methods to avoid bottlenecks.
3. Re-order Early: Regardless of a port strike or not, Chinese New Year falls early this year on January 29, 2025. Things are about to get busy at ports, especially with an election and tariff uncertainty coming. Get your ordersin soon.
4. Communicate with Customers if not FBA: If you're an off-Amazon ecommerce seller, be transparent with your customers about potential delays. Many customers will understand if they are notified in advance, which could help maintain trust and avoid negative reviews.