As the deadline for negotiations between the International Longshoremen’s Association (ILA) and the USMX approaches, a dockworker strike across the East and Gulf Coast ports seems increasingly likely. The shipping community must be prepared for potential disruptions beginning October 1, 2024. Without a new master contract agreement, port operations will halt, affecting critical shipping routes and causing congestion across 36 major ports, including New York/New Jersey, Norfolk, and Houston.
Carriers and terminals are taking preemptive actions, halting cargo movement, and implementing surcharges. Maersk, Hapag-Lloyd, and MSC have announced surcharges ranging from $1,000 to $1,500 per TEU, with additional fees for LCL shipments. The Biden administration has declined to intervene, and the ILA has indicated that work slowdowns would likely worsen congestion in the event of forced intervention.
To avoid potential delays, shippers are urged to expedite the pickup of cargo, particularly live reefers, by September 30. Containers left in terminals beyond this date will remain inaccessible throughout the strike. Additionally, export bookings from inland points will cease as early as September 23, and no new export bookings will be accepted after September 27.
Should a strike occur, contingency plans must be in place, including alternative transport options like airfreight, which is also expected to experience increased demand and higher costs.
To ensure your supply chain remains operational, contact your Everglory representative today to discuss strategies for minimizing disruption. Our team is here to help you navigate this evolving situation with minimal impact on your business.
Everglory Logistics is actively collaborating with our global carrier partners to implement contingency plans in the event of a strike.
If you have any immediate concerns or need additional information, please don’t hesitate to contact your Sales Representative or any member of our team.
