bigpicture
Peter Bradley
Editorial Director
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Karen Bachrach
Executive Editor
karen@dcvelocity.com
Toby Gooley
Senior Editor
tgooley@dcvelocity.com
David Maloney
Senior Editor, Special Projects & eContent
dmaloney@dcvelocity.com
Mark Solomon
Senior Editor
mark@dcvelocity.com
Susan Lacefield
Associate Managing Editor
slacefield@dcvelocity.com
James Cooke
Editor at Large
jcooke@dcvelocity.com
Steve Geary
Editor at Large
sgeary@dcvelocity.com
George Weimer
Editor at Large
gweimer@dcvelocity.com
Erica E. Mac Donald
Assistant Editor
Keisha Capitola
Director of Creative Services
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Jeff Thacker
Director of eMedia
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Columnists:
Clifford F. Lynch
Don Jacobson
Shelly Safian
Kenneth B. Ackerman
Art van Bodegraven
Barry Brandman
Rebounding from Sandy
Gary Master
Publisher
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Mitch Mac Donald
Group Editorial Director
mitch@dcvelocity.com
Jim Indelicato
Group Publisher
jindelicato@dcvelocity.com
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A PUBLICATION OF
WHILE WE WERE ALL KEEPING A CLOSE WATCH ON LABOR TALKS
at East Coast ports, it turned out to be the weather and not a strike that
proved the greater threat.
Superstorm Sandy cost Northeast supply chains at least $1 billion in the
estimate of IHS Global Insight, a major business consultancy. The Port of
New York and New Jersey had to shut down operations for several days
during the most important shipping season of the year. John F. Kennedy
International Airport’s cargo operations also closed down for some time.
The long-term damage to supply chains from the storm appears to be
relatively minimal. That’s in part due to the fact that disruptions to any
one region of the country, while certainly significant, are mitigated by the
sheer scale of the nation’s transportation infrastructure.
In the wake of the storm, the National Retail Federation
and the consultancy Hackett Associates reported that
import volumes at the nation’s major container ports
were likely to be up 5. 9 percent in November over last
year. Indeed, ocean carriers were able to divert ships to
other ports, including the Port of Virginia.
Oddly, the fact that shippers were able to get much
of their holiday merchandise into East Coast ports
ahead of the storm may be related to the difficult labor
talks between the International Longshoremen’s
Association (ILA) and port terminal management. At
one point, shippers feared the ILA could strike as early
as Sept. 30, and many had accelerated shipments to
ensure that goods arrived ahead of any labor stoppage.
Domestic freight held up because of the storm (and a second storm
that hit beleaguered residents a few days later) resumed moving fairly
quickly—sometimes ahead of the ability of businesses hammered by the
storm to accept delivery.
The response to the storm highlights both the vulnerability of supply
chains to sudden disruption and the U.S. logistics industry’s ability to
bounce back. In particular, we want to applaud those in the industry who
offered assistance in the aftermath of the storm. Jock Menzies, president
of the American Logistics Aid Network, which connects the supply chain
community with disaster relief groups and emergency management
organizations, told Senior Editor Mark Solomon, “We have seen an out-
pouring of support from the supply chain community. To date, donation
offers have included warehouse space, office space, material handling
equipment, and engineering expertise.”
In the meantime, the port labor negotiations that might have closed
the ports continue with guidance from a federal mediator. The two sides
have agreed to work under the contract that expired on Sept. 30 until the
end of the year.
Editorial Director
