The global supply chain faces an unprecedented double challenge: looming port strikes and potential massive tariff increases. For U.S. businesses, the time to protect against these risks is rapidly running out.

The Perfect Storm Approaches

Port Strike Risk

• East and Gulf Coast ports face potential strikes starting mid-January

• Previous October strike led to 54 vessels waiting outside ports

• Some ports like Savannah still haven't fully recovered

• Congestion took weeks to clear after just three days of strikes

Tariff Tsunami

Trump administration expected to implement:

•   60-100% tariffs on Chinese imports

•   10-20% tariffs on all other imports

Earliest implementation: late February/early March 2025

Major retailers already warning of price increases

Markets Under Intense Pressure

Metals Markets Facing Multiple Threats

• Steel prices could jump 15-25% under new tariffs

• Aluminum supplies facing bottlenecks from port disruptions

• Manufacturing costs rising as inventories tighten

Agricultural Markets at Risk

• Soybean and grain shipments delayed at ports

• Storage costs mounting for stranded cargo

• Price volatility increasing as delivery times become uncertain

The Real Cost to Your Business

Consider these real-world impacts:

A medium-sized manufacturer importing $5 million in steel annually could face:

• $750,000-$1.25 million in additional costs from tariffs alone

• Extra storage and financing costs from shipment delays

• Margin erosion from inability to pass costs to customers quickly

Ocean container rates could spike 70% (based on 2018 tariff experience)

Why Traditional Solutions Fall Short

Many businesses think they can:

• Pass costs to customers (but competition may prevent this)

• Switch suppliers (but quality and reliability suffer)

• Wait it out (but balance sheets take the hit)

The Hedging Advantage

Our automated hedging solutions offer:

• Lock in prices before tariffs hit

• Protect margins against port-related cost spikes

• Maintain flexibility while securing predictable costs

• Zero operational burden

• Best-in-market rates

• Real-time monitoring and execution

Why Time Is Running Out

The window for protection is closing:

• 40-55 days shipping time to East/Gulf Coast

• Holiday season approaching

• Limited hedging capacity as more companies act

Take Action Today

The cost of protection is always lowest before risk becomes reality. Don't let your business be caught unprepared when both port strikes and tariffs hit. Contact Pillar now for a free risk assessment and learn how our automated hedging can protect your margins.

*Based on reporting from CNBC, S&P Global Market Intelligence, and industry analysts.*