Is Your Supply Chain Prepared for the Next Port Disruption?

Imagine this: A major West Coast port grinds to a halt due to labor strikes, causing a national furniture retailer to face a nightmare scenario. Dozens of containers end up stuck offshore, there is no rerouting plan, and customer service teams become overwhelmed with complaints about missed delivery dates. The port disruption cost the company expedited freight and demurrage fees, lost sales, and long-term customer trust.

An industrial equipment supplier weathers the same port disruption down the coast with minimal fallout. Weeks earlier, their logistics partner had helped them map out alternative port routing options and position high-demand inventory at a secondary warehouse. When delays hit, they executed their plan, rerouting shipments, keeping customers informed, and maintaining delivery commitments with only minor delays.

These fictional examples reflect the impact of port disruptions on businesses in industries like furniture, industrial equipment, and solar. The reality is that most companies can’t permanently operate through multiple ports or maintain warehousing within a few miles of the port. As port disruptions become increasingly common and lengthy, contingency planning is no longer optional. It’s essential risk management in today’s volatile supply chain, enabling you to respond swiftly, minimize cost and chaos, and protect your brand.

The Growing Threat of Port Disruptions

Port disruptions have increased in frequency and severity due to factors like labor disputes, congestion, equipment shortages, and weather events.

Equipment shortages, such as the limited availability of chassis, cranes, and container-handling equipment, contribute to port congestion by slowing the movement of goods through terminals. These bottlenecks compound quickly, creating ripple effects across entire supply chains.

Labor disputes have also impacted ports.  For instance, the 2024 dockworker strikes at the US East and Gulf Coast ports brought port operations to a near standstill.  Although a tentative agreement was reached in early 2025, the cargo backlog and delays continued for weeks. When the strike ended, 54 container ships were anchored outside ports, risking shortages and costing the US economy an estimated $5 billion a day, according to JP Morgan analysts.

Infrastructure failures like the collapse of the Francis Scott Key Bridge in Baltimore in March 2024 halted operations at the Port of Baltimore for over 11 weeks. This led to a 33.8% drop in TEUs and widespread cargo rerouting, forcing shippers to absorb additional costs and delays.

Weather events continue to challenge port reliability around the globe. For example, in June 2024, typhoon-related disruptions at Chinese gateway hubs caused congestion at global container ports. More than 3 million TEU of vessels had to wait at anchorages and faced delays of 36-60 hours.

Domestically, a January 2025 Gulf and East Coast snowstorm caused multi-day port closures. Meanwhile, the on-time proportion of container shipments at the Port of Vancouver dropped nearly 40% the week of November 14, when the Canadian flooding began. It was still 15% below the three-month average of 67% as of early December.

The financial consequences of these disruptions are substantial. Whether caused by congestion or strikes, port delays can increase detention and demurrage costs, expedited freight charges, and lost sales. These disruptions lead to delays in container movement, forcing shippers to pay higher fees for extended container storage and potentially pay for expedited shipping to meet deadlines. Delays can also result in missed sales or damage to brand reputation, impacting revenue and future business. 

Developing Realistic Alternative Routing Plans

Preparation will help you avoid operational chaos and supply chain challenges when port disruptions occur. Create alternative port routing plans by mapping your product flows and identifying critical vulnerabilities. Look at which ports your goods enter, how long they stay at each location, and where delays would most impact your operations or customers. This review helps you identify which areas to prioritize in your contingency planning.

Balancing inventory positioning plays a key role in emergency logistics planning. While it’s not feasible or cost-effective for most companies to hold safety stock at every potential choke point, strategic inventory distribution across your network can improve supply chain resilience during a disruption. This might mean storing fast-moving or high-margin SKUs at a secondary warehouse or working with a 3PL that can help shift volume to alternate ports when needed. The goal is flexibility without excessive carrying costs.

Your port disruption contingency planning will be wasted if the resulting port congestion solution planning is in someone’s head or buried in a spreadsheet. Documented procedures that can be executed under pressure are essential. When a disruption hits, teams need clear, accessible playbooks that outline who’s responsible, what steps to follow, and how to communicate. These protocols should include alternate carrier contacts, routing instructions, rebooking steps, and internal/external communication templates for quick, decisive action.

Working with Your 3PL for Risk Management

A reliable and responsive third-party logistics (3PL) partner can be one of your most powerful allies in mitigating port disruption risk. Start by evaluating your 3PL’s capabilities across multiple port regions. Do they have an operational presence or partnerships near key alternate gateways? Are they experienced in navigating rerouting scenarios in response to labor actions, weather events, or congestion?

Pre-establishing relationships with carriers and service providers at alternative ports is crucial for successful port disruption contingency planning. Capacity disappears quickly during a disruption, so having those relationships already in place through your 3PL reduces response time and costs. In addition, strengthen partnerships by:

• Creating shared visibility and communication protocols with your 3PL partner to ensure you operate from the same playbook when disruptions occur. This allows your 3PL to monitor cargo in real-time and alert you to potential delays, giving you a head start on problem-solving. This reduces confusion, speeds up decision-making, and helps avoid costly delays or missed deliveries.
• Considering the cost-benefit analysis. Contingency planning comes with upfront costs, whether holding inventory in strategic locations, paying for systems integration, or running simulation drills with your 3PL. But compared to the financial impact of lost sales, emergency freight, or demurrage charges, the investment in preparedness is often far more economical and less stressful.

Prepare for the Next Port Disruption

Port disruptions are inevitable. Companies can no longer afford to take a reactive approach as they grow in frequency and complexity. Regardless of the cause, these events expose vulnerabilities that cost time, money, and customer trust. Investing time in port disruption contingency planning helps you build supply chain resilience to navigate these occurrences more effectively. Start by developing realistic alternative port routing plans and working with your 3PL to mitigate the risks, reduce response time, and minimize the costs of port disruptions.

Don’t wait for the next port disruption to test your supply chain. Talk to a logistics expert today and build a smarter, more resilient logistics strategy.