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News was released late yesterday, after I posted this post, regarding a tentative agreement at the ports.
This is an article explaining the specifics.
At this point, the agreement is that the ILA will hold off until January 15, five days prior to the inauguration of the new U.S. President.
What This Means for Business
This tentative agreement does not mean that an actual agreement will be reached in January. Nor does it mean that a strike will not take place at that time.
This uncertainty means that you need to continue planning to ensure that your business is prepared should a strike occur. I still stand by my advice from my previous post.
Why My Advice Stands
We all know that timing is everything in the world of retail sales. And with Memorial Day being just four months from January 15, it is possible that imports coming through the East Coast may not arrive in time for the holiday.
To hedge that risk, I highly recommend working with your importers to plan for your inventory needs in advance.
Additionally, the freight world will be preparing for feared back log and freight increases remain likely. It is wise to begin planning for those potential increases in your pricing to hedge against the risk of incurring increased freights when items actually arrive (if sold prior to but received after January 15).
Political Unrest
I do fear that politics is at play with all ILA strike-related decisions. Like many others, I do not believe it is coincidence that talks are being held off until right around inauguration.
With that said, if the election swings in a manner that is not supportive of the ILA’s position, the strike could be prolonged and have a profound impact on the economy.
Stay Up-to-Date
As with all matters impacting your business, it is important to keep a keen eye on developments and have plans in place to help hedge against their risks.
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