Toyota Anticipates US Port Strike's Effects on Auto Supply Chain

Toyota has ramped up production and inventory in response to the U.S. dockworkers' strike that began on October 1, 2024, affecting the East Coast and Gulf Coast. This strike represents the first large-scale work stoppage among dockworkers in nearly 50 years, prompted by a breakdown in labor negotiations for a new contract, as reported by Mexico Business News.

Toyota operates manufacturing facilities in Mississippi, Alabama, Texas, and Tennessee and is addressing potential shipping delays. "We built up some extra stock here over the last couple of weeks to help us buy a couple of days’ worth of inventory," said Jack Hollis, chief operating officer, Toyota’s North American unit.

Hollis also mentioned that Toyota plans to shift operations to alternative ports and locations if necessary. "It would be crippling to the economy if this goes on for too long," he added. 

The automaker's actions come amid challenges in the automotive market. Toyota reported a decline in sales for the third quarter of 2024, with figures down approximately eight percent compared to previous periods. This decrease has been attributed to fewer selling days last quarter and ongoing inflation pressures.