Avoiding Supply Chain Setbacks: 5 Critical Tips for Shippers Facing Disruptions

Supply chain disruptions, such as the recent East and Gulf Coast port strike, have a far-reaching impact on logistics, causing delays, rising costs, and operational bottlenecks. Being proactive can help mitigate the effects of such disruptions. Here are five essential steps shippers need to take to prepare for unexpected events like port strikes:

1. Diversify Shipping Routes and Ports

One of the most effective ways to prevent a major disruption is to diversify the ports you rely on. When East and Gulf Coast ports are impacted, for example, shippers can reroute cargo to West Coast ports, Canadian or Mexican ports. However, congestion at alternate ports, like those on the West Coast, can quickly become an issue, leading to longer transit times and increased costs. Establishing relationships with alternative ports and logistics providers ahead of time can help streamline this process.

Key Tip: Always have multiple port options as part of your contingency plan. This helps spread the risk and ensures you have alternatives when primary routes are disrupted.

2. Build a Flexible Inventory Strategy

Maintaining flexible inventory levels is crucial when facing potential supply chain disruptions. Consider increasing safety stock of essential items to avoid stockouts. During a disruption, delayed shipments may affect production schedules and customer fulfillment. Companies that operate lean inventories can suffer more severe consequences from supply chain interruptions.

Key Tip: Evaluate the balance between just-in-time (JIT) and just-in-case (JIC) inventory models to find the right level of preparedness for your business. Stocking up on critical goods before disruptions, such as strikes or weather-related events, can keep operations running smoothly.

3. Utilize Air Freight for Urgent Shipments

When time is of the essence, and ocean freight becomes unreliable, air freight can serve as a more expensive but faster alternative for critical shipments. Industries that rely on just-in-time deliveries, such as automotive or pharmaceutical, may find air freight the best option to ensure continuity during disruptions​. 

Key Tip: Pre-arrange contracts with air freight carriers to guarantee access to capacity when disruptions affect your regular shipping methods. This ensures urgent shipments aren’t delayed due to lack of available air cargo space.

4. Stay Proactive with Communication

Effective communication with stakeholders—suppliers, logistics providers, and customers—is crucial during a disruption. Keeping everyone informed helps adjust expectations and maintain trust. Transparency about potential delays and solutions can reduce the impact on customer satisfaction and business relationships.

Key Tip: Use automated systems to provide real-time updates to customers and partners about the status of their shipments, enabling better decision-making and planning throughout the supply chain.

5. Prepare Financially for Increased Shipping Costs

Supply chain disruptions often lead to skyrocketing costs, particularly for rerouting shipments and securing additional capacity. For example, the ongoing East Coast port strike has already led to higher costs for rerouted cargo and increased demand for shipping alternatives like air freight​.  The financial burden can affect your bottom line if not properly planned for.

Key Tip: Build contingency funds into your logistics budget to absorb unexpected cost spikes in transportation, storage, and distribution during periods of disruption. Understanding potential cost increases during disruptions allows you to budget more effectively.

Conclusion

Being prepared for supply chain disruptions is no longer optional—it’s a necessity. By diversifying your shipping routes, building flexibility into your inventory management, utilizing air freight when needed, staying transparent with stakeholders, and preparing for cost increases, shippers can minimize the impact of strikes and other disruptions. While not all challenges can be avoided, having a robust strategy in place will help you keep your supply chain moving smoothly, even when unexpected obstacles arise.

For more expert guidance on how to handle disruptions, contact WTS!