Looming Threat of Strikes at US Ports
After a crippling three-day strike that shut down shipping on the US East and Gulf coasts in early October, the International Longshoremen’s Association (ILA) agreed to suspend strike activity until January 15, 2025. Unfortunately, this extension has not yet resulted in successful negotiations to ratify a new, sustainable agreement.
The ILA, which represents 45,000 dockworkers at more than thirty ports, is still in ongoing contract negotiations with US port operators. If these talks fail, the resulting strike will cause major disruptions and severely affect port operations.
What does this mean?
Please be aware that these disruptions will increase operating costs. Some carriers have already implemented additional surcharges, which will take effect on various dates this month, depending on the carrier. Unfortunately, this means that we will have to pass on additional costs to our customers. The situation remains fluid, and we are closely monitoring developments to keep you informed.
Which ports could be affected?
The strike would impact most ports along the US East Coast and Gulf of Mexico, including major gateways such as Boston, New York/New Jersey, Norfolk, Savannah, Charleston, New Orleans, Mobile, Houston and Miami.
Are there any alternatives?
At this point, the viable alternatives include:
- Utilizing Canadian or Mexican ports
- Switching to air freight
- Exploring trans-loading options from West Coast ports to selected East Coast destinations
However, please be aware that diverting shipments to other ports could overwhelm their capacities as many are not equipped to handle such a sudden surge in volume.
For further questions or to explore the tailor-made solutions cargo-partner offers to address these challenges, please don’t hesitate to reach out to our local teams.
Cargo insurance can help in case of accident
Insure yourself against risks related to transporting cargo and protect your goods with cargo insurance. This covers not only damage/loss with respect to goods (as in accordance with terms of the policy), but is also applicable in cases of “Havarie Grosse”.*
cargo-partner’s freight insurance policies can insure your merchandise for up to 130% of its value and cover additional costs (e.g. carrying costs). Our Sea Cargo team would be happy to provide you with more detailed information.
* If a ship, with its cargo, is in distress at sea or endangered by fire or a lightning strike and is rescued alongside its cargo, then the cost of said rescue of ship and cargo is split proportionally amongst the goods’ owners and the ship’s owner according to the cost of the goods being transported. Even if the goods arrive undamaged.
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