Supply Chain Update

As we approach the midway mark for 2024, we want to provide an update on the current state of the supply chain as it affects our business.

“Peak season” for international shipping has arrived earlier this year than in previous years and we’re starting to see its effects in bookings delays, limited container and chassis availability, and blank sailings from international ports. The peak season rush on top of the displacement from the Panama Canal draught and the ongoing Red Sea crisis have further exacerbated capacity problems leading to 2-4 week delays in transit times.

With the current capacity issues, longer float times, projected port congestion, and peak season rush, we’re being warned of rate increases expected near Pandemic levels to be announced by the end of June. This information is speculative, but worth monitoring as any increase of this magnitude would significantly impact pricing.

The most concerning threat looming currently is the possibility of an East Coast/Gulf Coast port strike this fall as the master contract between the International Longshoremen’s Association and the United States Maritime Alliance is set to expire at the end of September. The current standoff between parties mirrors the West Coast contract dispute in 2022/23 that caused major disruptions throughout the supply chain.

We’re starting to see containers traditionally planned into East Coast ports being re-routed to the West Coast ports as importers are beginning to contingency plan against a port shutdown. Any disruption to port operations would further contribute to an already strained supply chain causing further delays in transit time and increases in ocean costs.

Our teams are continuing to monitor these factors and will provide further updates as available. We have begun some contingency planning to stay ahead of possible port disruptions and will keep our customers abreast of any changes that may affect their business.

If you have ANY questions about how the current situation and/or how future threats may affect your bulk bag supply, please do not hesitate to reach out to your salesperson directly.


GIVE US A CALL AT 205-620-9889

Physical address

Helena Industrial Park
545 Elm Street
Helena, AL 35080

Mailing address

P.O. Box 580
Helena, AL 35080

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