The spice and seasonings giant says it worked on mitigation plans with domestic suppliers ahead of the work stoppage.
What happened
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.
Why it matters
“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.
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.
This news brief is based on reporting published by Supply Chain Dive on 2024-10-03. The original report is linked below.
Supply Chain Dive
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