This article is part of our Vogue Business membership package. To enjoy unlimited access to our weekly Sustainability Edit, which contains Member-only reporting and analysis, sign up for membership here.
The East and Gulf Coast port strike may be over — ending with negotiations on 3 October after a three-day walkout — but what lingers is the looming fragility of fashion’s global supply chains.
Involving tens of thousands of dockworkers across dozens of ports from Maine to Texas, the International Longshoremen’s Association strike was the first of its kind in nearly five decades and threatened to disrupt billions of dollars in goods, especially in critical sectors like agriculture, apparel and footwear. The 85,000-member union called off the strike after securing a better wage offer from its employer, the United States Maritime Alliance, though the parties remain at odds over outstanding contract details — meaning another strike could be in store in the future.
The strike’s potential for widespread disruption had been anticipated by fashion and retail brands, many of which took pre-emptive measures to mitigate its effects. With contingency plans in place, many brands rerouted shipments to West Coast ports or leaned more on air freight, according to Morten Scheelsbeck, group communications manager for Leman, a Danish logistics firm. This foresight softened the blow for the fashion industry, ensuring that the three-day work stoppage didn’t create a significant shift to carbon-intensive air freight logistics or cause an overwhelming backlog of goods.
While it helped to avoid supply chain disruption, this solution isn’t a sustainable one. A large-scale switch to air freight would result in a massive greenhouse gas impact, given that this mode of transportation emits nearly 100 times more carbon per tonne compared to seaborne goods, warns David Hachfeld, textiles expert for Public Eye, a Swiss NGO focusing on issues of global justice and corporate accountability. Transportation emissions typically account for an estimated 3 to 5 per cent of fashion’s greenhouse gases; Hachfeld says a sizable shift to air freight could raise this to over 10 per cent or more, an increase that could be sustained for the long term. “The worst thing that could happen is that the airlines will significantly increase capacity and keep it high even after the port situation eases, driving prices down,” he says.
Recent global challenges have provided fashion ample opportunity to manage disruption. Reduced water levels in the Panama Canal starting in early 2023 limited the number of ships passing through, creating a backlog of vessels. This led to longer shipping times for goods, such as textiles and finished fashion products, as many brands rely on the canal for faster transit between Asia and the Americas. The delays slowed down the restocking of inventories, especially for retailers gearing up for peak shopping seasons like back-to-school or holiday periods.
The geopolitical crisis in the Red Sea late last year added another layer of complexity. Brands sourcing fabrics or manufacturing products in Europe, Asia and the Middle East saw shipment delays, impacting their ability to meet production deadlines.
According to Craig Kent, global retail and fashion account manager for Hellmann Worldwide Logistics, which serves brands like Lacoste, the increase in air freight usage among Hellmann’s fashion clientele remained negligible, at 1 to 2 per cent — further testament to the early action taken by brands. He notes growing interest in sea-air freight solutions, which strike a balance between cost, speed and environmental impact. This hybrid approach involves transporting goods by sea from critical production hubs like India and Bangladesh to major transit points such as Dubai, Shanghai or Hong Kong. From there, goods are transferred to air freight for faster delivery to their final destination. This strategy reduces reliance on air freight for the entire journey, thus lowering carbon emissions while still ensuring timely delivery.
A vulnerable supply chain
Although the strike’s direct impact was limited, the stoppage exposed broader supply chain vulnerabilities. Colin Browne, CEO of Cascale (formerly the Sustainable Apparel Coalition), highlights the “choke points” in the system, pointing out the pile-up of 54 container ships waiting to unload as a logistical challenge that won’t resolve quickly. The long-term effects of these bottlenecks, particularly for industries reliant on timely inventory management, may take time to fully unravel.
For the US fashion industry, the East and Gulf Coast ports account for 53 per cent of all apparel and footwear imports, valued at over $92 billion annually or roughly $280 per person in the country, according to the American Apparel and Footwear Association (AAFA). The walkout threatened significant economic disruption, with US government estimates indicating that a prolonged strike would cost the American economy approximately $23 billion per day.
The footwear industry, in particular, is heavily reliant on these ports. According to the AAFA, in 2023, 40.3 per cent of US footwear was imported through the East and Gulf Coast ports, valued at approximately $10.5 billion, or $32 per person in the US. This year, from January to July, that figure dropped slightly to 32 per cent, with imports through these ports valued at $5 billion.
The domino effect of port shutdowns is significant, with estimates indicating that each day of inactivity translates to a five to seven day delay in cargo movement. Hellmann’s Kent believes that because reopening the ports doesn’t augur an immediate return to normalcy, a month could pass before the backlog is fully cleared. “The cadence is completely gone,” Kent explains, noting the nuances of deciding which vessels get priority to berth and unload.
As a result, any delays — even short-lived — pose challenges for brands already navigating a complex supply chain landscape, exacerbated in the past two years by the Panama Canal drought and myriad other international disruptions.
Matt Priest, president and CEO of the Footwear Distributors and Retailers of America (FDRA), notes that the timing of the strike helped mitigate its effects, as most companies had already moved their holiday goods onshore. However, he harbours concerns about the cumulative impact on supply chain efficiency in the months leading up to the critical holiday season. Indeed, Public Eye’s Hachfeld worries that brands will resort to air freight to meet seasonal commitments amid the chaos. “This situation is a real test of how serious brands are about their climate goals and commitments,” he says.
Sign up to receive the Vogue Business newsletter for the latest luxury news and insights, plus exclusive membership discounts.
Comments, questions or feedback? Email us at feedback@voguebusiness.com.
