There is a simmering situation at present involving the railroads and their labor unions, which is casting a shadown on the supply chain as we approach Q4. After failing to reach an agreement this past weekend, railroads are announced contingency plans for a controlled shutdown as early as 9/16. With about 28% of U.S. freight movement hanging in the balance, the string would be felt rather quickly if this is not avoided. As of September 15th, however, it has been reported that a tentative agreement has been reached, which may avoid a strike.
West Coast Ports
While not connected directly to the ongoing talks with the ILWU, and the PMA, the security guard union at the Ports of Los Angles and Long Beach has authorized a strike but has not announced a date. The concern is that if the security officers strike, the dockworkers will honor their picket lines resulting in a shutdown of terminals.
Oceanx’s primary carrier, OSM Worldwide, is marking the start of its 20th year in business. Citing their ability to deliver 98% of parcels within 5 days or less by building out their network and their partnership with USPS, OSM is well positioned to sustain this momentum for the next 20 years.