Dive Brief:
- McCormick & Co. is “broadly covered” from port strike risks in the U.S. East and Gulf Coast from an inbound planning perspective, President and CEO Brendan Foley said during an Oct. 1 earnings call.
- The spice and seasonings manufacturer has been developing mitigation plans for a possible strike since April, such as working with domestic suppliers that may be relying on inbound cargo coming into the U.S.
- “We are monitoring it daily, though, just to make sure that we don't have any interruption of supply, but we feel like we planned for this,” Foley said.
Dive Insight:
The International Longshoremen’s Association went on strike Oct. 1 after being unable to reach a master contract agreement with the United States Maritime Alliance, or USMX, before a Sept. 30 deadline.
The strike has caused several marine terminals to close across East Coast and Gulf Coast ports, spurring concerns about the broader impact on supply chains, Trade organizations, including the National Retail Federation, and government officials like President Joe Biden are urging both parties to reach an agreement.
If an agreement isn’t reached, there could be considerable long-lasting impacts, including possible ocean carrier surcharges and weeks of manufacturing delays.
Despite the strategic efforts to combat supply planning risks, Foley emphasized the need for the ILA and USMX to reach a deal before disruptions worsen.
“Overall, though, we encourage both sides to work through this as productively as they can and with pace because this is something obviously that we don't want to see have a long extended event,” the CEO said.
