ALERTS & ​ADVISORIES

Preparing for an Imminent ILA Strike

By
September 25, 2024
Preparing for an Imminent ILA Strike
Preparing for an Imminent ILA Strike

Negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have stalled, with key issues like wages and automation remaining unresolved. If an agreement is not reached by September 30, 2024, the ILA is set to strike on October 1, 2024.

What This Means for Your Business

The ILA represents maritime workers at container ports across the U.S. East and Gulf Coasts. A strike would result in:

  • A halt to container handling at over half of U.S. container ports.
  • Severe delays at East and Gulf Coast entry points.
  • Significant delays for cargo already en route to these ports.
  • Rerouted vessels, leading to extended transit times and higher costs.
  • Stranded cargo at ports, adding storage and detention fees.
  • A ripple effect on importers, retailers, and others during the peak season.
  • Increased global shipping costs and freight congestion.

Recommendations for Shippers and Clients

  1. Prepare for Congestion at West Coast Ports: Many shippers have already redirected cargo to the West Coast, leading to heavy congestion. Expect extended transit times, higher fees, and longer wait times for unloading.
  2. Expect Delays for In-Transit Cargo: Ships bound for East and Gulf Coast ports will face docking delays. Even after the strike, expect backlogs at ports before operations normalize.
  3. Use Air Freight for Urgent Shipments: Air freight is the fastest alternative for time-sensitive shipments. JAS offers multiple air cargo solutions.
  4. Prepare for Higher Shipping Rates: Costs will rise dramatically due to increased demand for freight capacity.
  5. Expect Higher Container Fees: Delays will trigger higher demurrage, detention, and storage fees. 
  6. Review Financial Responsibilities: Incoterms determines who bears the cost of delays and fees. Shippers and importers must be prepared to address storage and rerouting costs.

If you have any concerns or would like to explore alternative solutions, please reach out to your JAS representative. We have a range of contingency options ready to be implemented immediately to ensure your shipments continue moving as smoothly as possible. To minimize potential delays, we recommend exploring alternative logistics solutions, such as airfreight, for high-priority shipments. Our team can also assist with rerouting options.

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