The cannabis industry breathed a sigh of relief as news of the East Coast port strike settlement ended a week of uncertainty. The industry, which has already had its fair share of challenges, certainly didn’t need another problem.
While cannabis in the U.S. can’t cross state or federal lines, many of the components that go into packaging and vaporizers can – and does. Most vape hardware, in fact, comes from overseas. And as the East Coast has ramped its new markets, many more of those products were coming directly into East Coast ports.
Losing that port entry meant companies would have to seek alternatives like rerouting to the West Coast which would increase costs. The added West Coast traffic would also cause delays. Companies could resort to air shipments but again that is a more expensive option. Plus, the added demands on air shipping would cause prices to jump. Thus, all other options were more costly and would come with delays.
Relief
When the end to the strike was announced, Dan DiCapite, president of Brooklyn-based cannabis packaging company Canna Supply House, simply said, “We’re super relieved.”
While many of the final products from Canna Supply House are made domestically, the components – such as paper or stock – “could be coming from anywhere around the globe,” DiCapite said. “So we might be making our product in Brooklyn, but we still rely on resources and materials from around the globe.”
So a total shut down of the Eastern Seaboard, “would’ve been a disaster.”
The company was starting to make alternate shipping plans to reroute items, but it decided to wait and see if the situation was resolved itself.
Be prepared
The issue caused significant anxiety for many in the cannabis supply chain, Pete Sahani, CEO of vape company The Blinc Group, said. He noted that the availability of vape hardware is reliant on consistent supply chains.
“While we respect workers’ rights to advocate for better conditions, the timing and scale of the strike amplif(ied) supply chain vulnerabilities, potentially hindering the growth and progress of emerging industries like ours,” Sahani said.
A key to responding to such disruptions, however, is to be prepared for them, he said.
“Blinc has evolved its operations and fulfillment teams into essentially a supply chain solutions provider,” Sahani said. “As such, we work very closely with our clients to manage and mitigate risk to the supply chain.”
A critical component of that preparation: solid communication with supply chain partners.
“This has been a long-term discussion, and Blinc has always focused on working with our clients to resolve the multiple areas of supply chain risk, whether it be vape hardware, packaging or other ancillary products.”
And just because this strike is over, that doesn’t mean companies should become complacent. As the Boy Scouts say: Be prepared.
[[{“value”:”An already vulnerable industry dodged the shipping bullet after the dockworkers union and the shipping lines reached a tentative agreement.
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