How the U.S. Port Strike Can Affect Health Care

A port with a large ship and cargo

By: Krysten Brenlla

On Tuesday, October 1, roughly 45,000 unionized dockworkers on the East and Gulf Coasts went on strike for the first time in more than 45 years, disrupting supply chains for consumer goods and manufacturing parts by halting the flow of about half the nation’s ocean shipping. The strike could affect the healthcare industry, potentially leading to material shortages.

How will healthcare and pharmaceutical industries be impacted?

According to JPMorgan analysts, a strike could cost the U.S. economy $5 billion a day.

When it comes to the impact on health care and pharmaceuticals, Everstream Analytics reports several key points:

  • The affected ports handle 69 percent of containerized exports of U.S. pharmaceutical products and more than 91 percent of containerized imports.
  • More than one in three containers that leave the U.S. with medications leaves from the Port of Norfolk, Virginia – one of the ports on strike. This could restrict the amount of medications and surgical supplies the U.S. exports to other countries.
  • Nearly 30 percent of containerized pharmaceutical imports in the U.S. enter through the Port of Charleston, South Carolina – one of the ports on strike. This could affect the amount of medical supplies and medicine the U.S. imports from other countries.
  • Customs data shows that medical devices and drug components for weight-loss and diabetes drugs from Novo Nordisk and Eli Lilly – specifically Ozempic, Wegovy, Mounjaro, and Zepbound – are being impacted by the port strike.

However, according to Dr. Venessa Goodnow, Jackson’s chief pharmacy officer, most pharmaceutical products are flown in, and Jackson specifically receives its medications through a variety of supply chains, like many health systems and hospitals across the country.

“Patients shouldn’t be concerned about upcoming procedures, or shouldn’t hoard prescription medications, as hospitals and pharmacies are preparing for these changes in distribution channels to support patient care,” Dr. Goodnow said. “With all of the disruptors to the pharmacy supply chain, it’s just another aspect of the constant planning and preparation to ensure medication supply is adequate at all times. We don’t have any immediate concerns.”

As part of Jackson’s contingency plan, Rosa Costanzo, senior vice president of strategic sourcing and supply chain management; and chief procurement officer, said the health system is working with internal teams and suppliers to minimize impact, and have engaged Jackson’s medical surgical supply distributor for proactive emergency planning.

“The port strike is another supply chain disruption that’ll test clinical supply chain resiliency in hospitals across the country, especially with the industry still being challenged with manufacturer back orders and supply allocations,” Costanzo said. “Although the situation continues to evolve, some companies have shifted inbound shipments, and are reviewing contingency and emergency response plans to support hospitals, like ours at Jackson, should the strike continue.”