The potential strike by East and Gulf Coast port workers is already affecting U.S. trucking networks. To avoid delays, shippers are moving goods earlier, increasing demand on trucking and tightening capacity. If it lasts more than a few days, the impact from the strike will be more severe and affecting areas much further inland from ports.
Drayage and trucking companies are taking proactive measures this week by retrieving containers from ports in the Eastern and Southern U.S. ports, sending some containers to the West Coast via intermodal trains, and seeking space to transload and store goods and containers.
The strike could lead to a recovery in trucking prices, which have been low for most of 2024. Spot rates for truckloads have remained flat, while contract rates have stabilized. There are signs rates could increase likely in 2025, but a lengthier strike might reset these expectations.
Many businesses that prepared contingency plans during the pandemic are implementing them now to avoid disruptions. If the strike lasts more than a week, it could take until the end of the year to catch up. A prolonged strike will bury the ports in backlogged containers, and when the ports reopen, all shippers will need their goods at the same time, which will strain trucking capacity.
Source: Journal of Commerce
At Shipco, our brokerage team specializes in working with freight forwarders. The team has access to over 900 different FTL carriers, including carriers with specialized equipment. They can respond to rate requests sent to domesticrates@shipco.com within 30 minutes.
Ultimately, a well-coordinated response to the ILA strike is not just about risk management but about bringing value to our clients so they continue receiving reliable service. By leveraging our industry knowledge, strong carrier relationships, and agile problem-solving abilities, we can assist our customers in navigating the challenges through our brokerage division’s expertise.
