ALERTS & ​ADVISORIES

Strike Alert: Immediate Disruption at East and Gulf Coast Ports

Business Impact & Mitigation Strategies

By
October 1, 2024
Strike to Disrupt East and Gulf Coast Ports—Immediate Business Impact
Strike to Disrupt East and Gulf Coast Ports—Immediate Business Impact

Urgent Notice: As of 12:01 AM on October 1st, a major strike involving nearly 50,000 members of the International Longshoremen’s Association (ILA) has disrupted operations at critical East and Gulf Coast ports. This unprecedented work stoppage is already halting the flow of goods through vital cargo hubs from Maine to Texas, significantly impacting U.S. imports and exports. The strike is expected to ripple across the entire supply chain, threatening U.S. businesses with delays, higher costs, and logistical bottlenecks.

What’s Happening: For the first time in decades, dockworkers at 36 ports along the East and Gulf Coasts have gone on strike over key issues, including wages and the increasing use of automation. This disruption extends beyond U.S. borders, as solidarity actions have also been announced by labor unions in Canada, with the Montreal Longshoremen’s Union planning work stoppages at major terminals. Norfolk Southern has issued a port curtailment schedule, further complicating inland transport, while surging ocean freight rates and growing port congestion loom large for businesses dependent on timely deliveries.

What’s at Stake:

Operations at 36 key ports—responsible for handling nearly half of all U.S. trade—are at a standstill. The economic impact will be felt across industries:

  • Severe Supply Chain Disruptions: Container ports are halted, delaying critical shipments and production schedules.
  • Extended Transit Times: Rerouting and bottlenecks will push delivery times beyond standard windows, potentially forcing costly adjustments.
  • Higher Freight Rates & Surcharges: Increased demand and storage congestion have already triggered ocean carrier surcharges. Some shipping lines published Force Majeure declarations.
  • Global Ripple Effects: Heightened demand for alternate shipping routes and ports may worsen congestion globally, slowing the movement of goods across borders

Key Impacts for Your Business:

  • Port Closures: Expect significant shutdowns at key East and Gulf Coast ports, causing massive delays.
  • Shipping Delays: Cargo destined for these regions will face prolonged wait times, even after the strike is resolved.
  • Costly Storage Fees: Stranded cargo could incur substantial detention and demurrage charges.
  • Industry-Wide Fallout: Retailers and importers—particularly during peak season—are most at risk for severe disruptions.
  • Global Shipping Congestion: Anticipate an increase in freight rates as demand for alternative routes skyrockets.

Proactive Recommendations to Minimize Disruption:

  1. Prepare for West Coast Congestion: Cargo will likely reroute to West Coast ports, further straining capacity and driving up costs.
  2. Expect Docking Delays: Once the strike ends, a backlog of shipments will still cause prolonged delays at East and Gulf Coast ports.
  3. Consider Air Freight: For urgent shipments, air freight offers the quickest solution. While demand will likely drive rates up, JAS provides a range of air cargo options.
  4. Plan for Increased Costs: Expect rising shipping rates, along with elevated storage, detention, and demurrage fees as congestion intensifies.
  5. Review Incoterms: Ensure that all financial responsibilities for delays or rerouting are clear between all parties involved.

JAS is Here to Support You:

During this critical period, JAS is committed to minimizing the disruption to your business. We’ve developed comprehensive contingency plans, including:

  • Alternative Solutions: Air freight and strategic rerouting options for time-sensitive shipments.
  • Tailored Logistics: Our team will work closely with you to create customized strategies that maintain supply chain continuity.

Next Steps:

Reach out to your JAS representative today to discuss tailored logistics solutions and how we can help your business navigate this challenging situation.

JAS Worldwide is dedicated to supporting you through these turbulent times. Rest assured, we’re working diligently to keep your operations running as smoothly as possible.

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Jur de Graaf, Managing Director of International Airfreight Associates, added, "Joining JAS allows us to expand our services globally and continue delivering high-quality logistics solutions for our customers. We are confident that our partnership will create new opportunities for our employees, partners and clients.”

IAA is one of the top 3 IATA forwarders at Amsterdam Schiphol Airport with Warehouses and Operations in the Netherlands, Belgium and Germany. IAA specializes in managing time-sensitive perishable fresh goods and livestock shipments as well as multimodal general cargo.

The acquisition strengthens JAS global service portfolio by enhancing the footprint in the European logistics market and beyond. Together, JAS and IAA teams will drive customer value through expanded service offerings, operational excellence, and an even broader global network.

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JAS, a global leader in logistics and supply chain solutions, was founded in Milan, Italy, in 1978. Headquartered in Atlanta, Georgia, and supported by 7,000+ team members in more than 100 countries, JAS focuses on creating solutions that are innovative, sustainable, and tailored to customer needs. As a privately owned company, JAS is committed to creating opportunities for communities, customers, and colleagues to thrive.

About International Airfreight Associates B.V.

International Airfreight Associates B.V. ("IAA") is a specialized provider of Air, Ocean and Road Freight services headquartered in the Netherlands. With nearly 100 employees and strategic locations and operations including Amsterdam, Aalsmeer, Rotterdam, and Frankfurt, the company specializes in moving fresh perishable goods, livestock and multimodal supply chain solutions for a diverse range of clients.

JAS Poland proudly took home three awards at the Lufthansa Cargo Partner Event in Warsaw, recognizing our outstanding performance in 2024.

On January 24, 2025, industry leaders gathered at the Renaissance Warsaw Airport Hotel to celebrate a year of collaboration with Lufthansa Cargo.

The evening brought together key partners to reflect on past achievements, discuss future opportunities, and recognize outstanding performance across the logistics sector.

JAS Poland had a standout night, earning three awards for exceptional performance in 2024:

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The event featured an inspiring speech by Ashwin Bhat, CEO of Lufthansa Cargo AG, and a panel discussion on the evolving landscape of e-commerce. The awards gala was a testament to the strong partnerships and shared success within the industry.

A heartfelt thank you to Lufthansa Cargo for their continued trust and collaboration. Here’s to another year of reaching new heights!

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The European Union's Sustainable Aviation Fuel (SAF) mandate is set to reshape the aviation industry, requiring airlines to incorporate a minimum of 2% SAF in their fuel mix starting in 2025. This regulation represents a major step toward reducing carbon emissions, but it also brings substantial cost challenges for carriers operating across Europe.

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As airlines adapt to these regulatory changes, they must navigate the delicate balance between cost management and environmental responsibility. The evolution of SAF production, along with advancements in supply chain logistics, will play a critical role in determining how efficiently the industry can meet these mandates. Collaboration between fuel suppliers, airlines, and logistics partners will be essential to ensuring a smooth transition.

Stay Informed with JAS

To help our customers understand the implications of this new regulation, we invite you to download HERE the JAS One-Pager on the ReFuelEU Aviation Regulation. This resource provides a clear and user-friendly overview of the changes and their impact on airfreight logistics. Additionally, you can visit the ReFuelEU Aviation Regulation website for further details (ReFuelEU Aviation Regulation website )

At JAS, we are committed to clear and transparent communication regarding regulatory changes affecting global supply chains. If you have any questions or concerns, please do not hesitate to contact your nearest JAS representative for more information and tailored support.

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