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FedEx activates contigency plans in light of port strikes

The union dockworkers strike that began early Tuesday impacting dozens of U.S. ports has triggered shipping giant FedEx to launch contingency plans aimed at minimizing disruptions in shipments.

“We are using our vast network capabilities and supply chain expertise to activate contingency plans and provide support for those affected by this situation,” a FedEx spokesperson told FOX Business. “Our top priority is to maintain the excellent service our customers expect, and the FedEx team stands ready to assist.”

Tail fin on a FedEx plane

FedEx has launched contingency plans amid a union dockworkers strike impacting several US ports. (REUTERS/Charles Platiau / Reuters Photos)

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The spokesperson added that any customers with questions about shipments or those seeking to transport shipments via Air Freight are urged to go on the company’s website or contact their FedEx sales representative.

Unionized dockworkers at 36 East and Gulf Coast ports went on strike after midnight amid an impasse in negotiations over a new contract with a group representing port employers.

US PORT WORKER SPEAKS OUT ON THE PICKET LINE: ‘WE’VE TAKEN LESS THAN WE’VE DESERVED IN THE PAST’

The International Longshoremen’s Association (ILA), which represents 45,000 dockworkers, began its first strike since 1977 after its six-year contract with the U.S. Maritime Alliance (USMX), which represents port employers, expired Monday night.

Negotiations between the ILA and USMX have been deadlocked thus far over the union’s demands related to wage hikes and compensation, as well as protection from automation at ports. 

Shipping containers and cranes at the Port of Savannah in Savannah, Georgia, US, on Saturday, Sept. 9, 2023. The US economy has been looking so solid lately that Federal Reserve officials will probably need to double their projection for growth in 2023 when they publish an updated outlook later this month. Photographer: Elijah Nouvelage/Bloomberg via Getty Images

Port employers and unionized dockworkers remain at an impasse after failing to reach a new contract agreement. (Elijah Nouvelage/Bloomberg via Getty Images / Getty Images)

U.S. seaports from Maine to Texas will be impacted by the strike. Those ports collectively handle about half of U.S. imports and are also critical hubs for exports from American businesses. 

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Imports of cars and auto parts, agricultural products like bananas, machinery, fabricated steel, furniture, apparel and more will be affected. East and Gulf Coast ports also handle significant percentages of exported cars and auto parts, pharmaceutical products, beef, pork, poultry, eggs, wood, plastics and other products or commodities.

Port of Newark

The dockworkers strike will impact ports on the East and Gulf Coasts. (Photographer: Michael Nagle/Bloomberg via Getty Images / Getty Images)

An analysis by JPMorgan estimated the daily cost of a port strike by East and Gulf Coast port workers would cost the U.S. economy between $3.8 billion and $4.5 billion per day as operations slow.

However, Anderson Economic Group (AEG), which specializes in economic impact estimates, expects the total cost of the strike to be much lower, at $2.1 billion for the first week.

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Still, Patrick Anderson, principal and CEO of AEG, told FOX Business he agrees with JPMorgan’s analysts that the duration of the strike is likely to be determined by whether the Biden administration intervenes.

FOX Business’ Eric Revell contributed to this report.

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