Potential disruptions could impact your supply chain due to ongoing negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance, Ltd. (USMX).
As of October 1, 2024, their collective bargaining agreement expired, resulting in a three-day strike that affected all East Coast and Gulf Coast ports serviced by the ILA. Although a three-month extension was negotiated, allowing the ports to reopen, a long-term agreement has yet to be reached.
ILA News Links & Updates
- Transport Topics (11/13/24): Dockworkers Call Off Talks Again, with Automation at Issue
The International Longshoremen’s Association has broken off contract negotiations with the U.S. Maritime Alliance over automation concerns, rejecting a proposal to allow semi-automated equipment at ports, raising the possibility of another port strike early next year. - US News (10/30/24): US Shippers Avoid East Coast Ports on Risk of Second Strike
Key Dates
The current extension is set to expire on January 15, 2025, which could result in another strike if an agreement is not reached. It is important to note that in the days leading up to this date, ports may begin rejecting cargo, leading to further disruptions.
Ports Directly Impacted
| Boston | New York | Philadelphia | Baltimore |
| Hampton Roads (Norfolk) | Wilmington | Charleston | Savannah |
| Jacksonville | Miami | Tampa | Mobile |
| New Orleans | Houston |
Implications for Other Ports
If the strike proceeds, ports that remain operational will experience:
- Increased demand, congestion, and costs, particularly on the West Coast and in Canada (Halifax)
- Sympathetic actions from ILA members at non-striking ports, which could further disrupt operations
- Increased delays at alternative ports as capacity is exceeded
Potential Pre-Strike Effects
- Congestion at West Coast ports
- Stockpiling and diversion of hazardous materials
- Rising port authority costs
- A surge in air freight demand, increasing overall transportation costs
How to Prepare |
To mitigate potential disruptions, we recommend taking the following steps immediately:
- Increase your inventory of critical materials to ensure adequate supply through the potential strike period.
- Book freight early—work closely with your freight forwarder to secure bookings as soon as possible.
- Communicate proactively—inform us of any anticipated shortfalls so we can explore alternative shipping options for you.
Restrictions on Air Freight
Not all materials are eligible for air freight transport, particularly certain hazardous materials. We encourage you to contact your Freight Forwarding team to confirm which materials can be shipped by air and discuss any restrictions that apply.
Expectations for Recovery
Even if a strike is avoided, we anticipate disruptions leading up to January 15. If the strike occurs, recovery times could extend up to seven days for every day of the strike. As such, it is crucial to maintain sufficient materials on hand during this period to avoid interruptions.
