ALERTS & ​ADVISORIES

Strike Alert: Dockworkers Set to Walk Off at Midnight

Imminent Strike to Disrupt East and Gulf Coast Ports—Immediate Business Impact

By
September 30, 2024
Imminent Strike to Disrupt East and Gulf Coast Ports—Immediate Business Impact
Imminent Strike to Disrupt East and Gulf Coast Ports—Immediate Business Impact

There is no resolution in sight: negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) have stalled, making a strike by 45,000 dockworkers look inevitable. The strike, which is set to commence at midnight, poses a critical threat to U.S. supply chains, with widespread port closures expected across the East and Gulf coasts.

What’s at Stake: This disruption could grind operations to a halt at 36 key ports—responsible for handling nearly 50% of all U.S. trade. The ripple effect on businesses could be significant, leading to:

  • Severe supply chain delays and halted operations at crucial container ports.
  • Extended transit times and the need for costly rerouting.
  • Higher shipping rates and additional fees due to cargo congestion and storage.
  • Surcharges from carriers already announced, including declarations of Force Majeure by some.
  • Global shipping slowdowns as bottlenecks intensify.

Key Impacts for Your Business:

  • Port Closures: Expect major disruptions at East and Gulf Coast entry points.
  • Shipping Delays: Prolonged transit times could lead to increased costs for businesses and consumers.
  • Costly Storage Fees: Stranded cargo may result in significant detention and demurrage charges.
  • Industry-Wide Ripples: Retailers and importers will feel the effects, especially during peak season.
  • Global Congestion: Heightened demand for alternative routes and services will drive freight rates higher.

Proactive Recommendations to Minimize Disruption:

  1. Prepare for West Coast Congestion: As cargo reroutes to the West Coast, anticipate delays and increased fees due to congestion.
  2. Expect Docking Delays: Cargo destined for East and Gulf Coast ports will experience prolonged wait times, even post-strike.
  3. Consider Air Freight: For urgent shipments, air freight remains the quickest option. JAS offers a variety of air cargo solutions, though high demand will likely push rates up.
  4. Plan for Increased Costs: Rising demand and delays will lead to higher shipping rates, along with elevated storage, detention, and demurrage fees.
  5. Review Incoterms: Ensure that all parties are clear on financial responsibilities for additional costs caused by delays or rerouting.

JAS is Here to Support You:

To help navigate these challenges, JAS has developed contingency plans. We recommend exploring alternative solutions like air freight for time-sensitive shipments or strategic rerouting to minimize delays. Our team is ready to tailor logistics strategies to keep your supply chain moving.

Contact your JAS representative today to discuss how we can support your business during this critical time.

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