Journal Bites 🍪 "The Impact of Labour Disruption on Supply Chains"
Labour disruptions impact supply chains in several ways:
Lost Productivity
Increased Costs
Logistical Challenges
Quality Control Issues
Supply Chain Bottlenecks
Inventory Management Problems
Employee Relations
Bankruptcy
Overall, labour disruptions can create a ripple effect throughout the supply chain, impacting everything from production to delivery and ultimately affecting the end consumer.
(weforum.org)
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A Recent Example:
Labour disruption’s financial impact on North American supply chains in 2024 include this recent example of the strike by the International Longshoremen's Association (ILA).
2024 US Dockworker Strike has an Estimated Economic Cost of $5 Billion a Day
The walkout could cost the American economy roughly 💵 $5 billion a day
JP Morgan analysts estimate.
Quick Facts:
It is the 1st major labour action by this union since 1977.
This action is affecting 36 US ports including those in:
⛴️New York,
🚢Baltimore, and
🛳️Houston.
Marine logistics is a critical element for international trade for the USA.
⚓️ The US Waterborne trade accounts for approximately:
50% of imports 📦📦📦📦📦
37% of exports 📦📦📦📦
Ports manage a range of containerized goods ranging from bananas🍌, to clothing🛍️, to cars🚘.
The walkout could cost the American economy roughly 💵 $5 billion a day,
JP Morgan analysts estimate.
#supplychainchallenge #logistics #supplychain #2024