Recently, tens of thousands of dock workers on the U.S. East Coast and Gulf Coast held a strike, potentially causing significant disruptions to the automotive supply chain. According to S&P Global Market Intelligence, the affected ports handled $37.8 billion worth of automotive imports in the 12 months ending June 30, 2024. The CEO of the Motor & Equipment Manufacturers Association (MEMA) noted that this figure excludes auto parts, and continued strikes could lead to parts shortages causing factory shutdowns or layoffs.
The Port of Baltimore, the busiest automotive import port in the U.S., imported 847,158 vehicles in 2023. This strike could heavily impact the auto industry. Barclays analyst Dan Levy indicated that 70% of U.S. auto parts imports come through affected ports. Companies may have increased their inventories in anticipation of the strike. Xeneta's chief analyst predicted the strike might last 5-7 days until government intervention, with potential impacts on European and Asian shipping routes lasting into early next year.
Jack Hollis, head of sales for Toyota North America, acknowledged the wide-reaching impact on the auto industry. Barclays researchers anticipate disruptions for European manufacturers like BMW, Mercedes-Benz, Volkswagen, and Volvo, although higher inventory levels may mitigate immediate effects. Randy Parker, CEO of Hyundai Motor America, mentioned that Hyundai is closely coordinating with its logistics subsidiary Hyundai Globis to ensure stable delivery of vehicles during the strike.
General Motors (GM, Financial), Ford, and Stellantis are monitoring the situation and have emergency plans to minimize any operational disruptions. MEMA's Long revealed the organization participated in a briefing at the White House, urging bipartisan cooperation to address the crisis. The President of the U.S. Chamber of Commerce also called on President Biden to prevent the strike.
As of September 30, the U.S. government reiterated it would not use the federal Taft-Hartley Act to halt the strike.
