Recent reports from The Maritime Executive indicate that the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) plan to resume negotiations on January 7—just days before the current contract extension expires on January 15. While this is a positive step, if no agreement is reached, a strike could begin as early as January 16. The days leading up to the strike will be congested, so even if negotiations result in a strike avoidance, you should still expect disruptions at East and Gulf Coast ports. In the event the strike proceeds, it is expected to take 7 days to recover for every 1 day of the strike.
What This Means for You
- Early Shipments: Consider accelerating upcoming shipments to mitigate potential work stoppages. The closer we get to January 15, the greater the risk of delays or cargo rejections.
- Alternative Routing: If you opt to reroute cargo, be aware that increased volume at alternate ports may lead to congestion and higher costs. Solidarity actions at non-striking ports could also slow down operations.
- Proactive Planning: Ensure your current inventory levels are sufficient. Communicate proactively with carriers and freight forwarders about any changes or surcharges they might impose if a strike occurs.
- Ongoing Updates: Stay connected with your account representatives and watch for official notifications from carriers and port authorities, as the situation can change rapidly.
Please contact your Rinchem representatives to discuss any concerns and possible actions you can take to reduce risk in your supply chain. Our team will continue monitoring these negotiations and provide updates as they become available.
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