Negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) remain unresolved, with the current master contract extension set to expire on January 15, 2025.
Key U.S. East and Gulf Coast ports could face another strike without an agreement. Given the limited media coverage of these negotiations, it is advisable for shippers and forwarders to proactively plan and consider alternative routes.
Ports Impacted
A strike would disrupt operations at key East Coast and Gulf Coast ports, including major hubs such as New York/New Jersey, Savannah, Charleston, Houston, Miami, and Port Everglades.
Ripple Effects on Other Ports
If the strike occurs, expect:
- Higher demand, congestion, and costs at alternative ports, especially on the West Coast and in Canada.
- Possible sympathetic actions from fellow labor unions at non-striking ports, worsening disruptions.
- Extended delays as alternative ports struggle to handle the overflow of cargo.
Potential Duration of Disruption
- Short-Term Strike (1-2 days): Port congestion and delays may take 5-7 days to clear. Costs and logistical challenges would be relatively minimal, unless carriers declare force majeure, rerouting some containers to foreign ports.
- Extended Strike (1-2 weeks): Severe congestion would overwhelm ports, Container Freight Station (CFS) facilities, and strain transportation networks, including trucking and rail, causing higher costs and delays across the supply chain.
Mitigation Options
- Alternative Routing: Our direct import and export services through Los Angeles and Montreal provide options to bypass disruptions on the East and Gulf Coasts, ensuring supply chain continuity.
- Managed Intermodal Services: Our dedicated import and export intermodal solutions offer a single-source solution with end-to-end control and visibility.
Decisions to reroute cargo should consider transit times, costs, and specific shipping requirements. While these services may not be optimal under normal circumstances, they offer a practical solution to navigate potential challenges posed by labor strikes.
Source: Shipco Transport
