Potential US port strike impacting East and Gulf Coast

Attention: Shipping Manager

The threat of a multi-coast strike by the International Longshoremen’s Association (ILA) could soon become a reality in the US, with the current labor contract between the ILA and the United States Maritime Alliance (USMX) expiring at the end of September.

The ILA is maintaining that it will not accept any extension of the contract nor any potential mediation by the federal government. Contract negotiations began back in February 2023 but quickly foundered on the issue of wage increases. A more recent attempt to come to the table in July also ended abruptly. Negotiations have not progressed in the months since, and tensions have escalated accordingly. On September 5^th, the president of the ILA affirmed that they will “most definitely” strike if demands are not met, and ILA leadership outlined its mobilization plan to unanimous support from its attending members.

The strike would impact key East Coast and Gulf Coast ports, including major hubs such as New York/New Jersey, Savannah, Charleston, Houston, Miami, and Port Everglades.

A strike at these major ports could severely disrupt supply chains and, if it proceeds, it could last anywhere from one day up to several weeks.

 

• What are the expected disruptions in a one-to-two-day strike?

In the first one-to-two days, it is expected that operations at major East and Gulf Coast ports will cease. Ships would remain anchored offshore, while Container Freight Station (CFS) facilities would face backlogs. Warehouses and transportation hubs would see delays, but they would likely be manageable in the short term.

• How would a multiple week strike impact port and CFS operations?

A one-to-two-week strike would cause severe congestion at ports, as CFS facilities struggle to process backlogged containers. Warehouses would become overwhelmed, and transportation networks like trucking and rail would experience significant strain, leading to increased costs and longer delays.

 

The U.S. government could invoke the Taft-Hartley Act, which would enforce an 80-day cooling-off period if the strike is deemed a threat to national security. However, the ILA has shown resistance to federal intervention, complicating any swift resolution.

In preparation for a strike, we will be offering our customers the opportunity to reroute via west coast where possible. But if you are still concerned about your shipments, please do not hesitate to contact your customer service representative.

We will keep you updated with any further information.

(Source: Freightwaves)