Summary:
The ILA (International Longshoremen’s Union) and the USMX (United States Maritime Alliance) have not met for contract negotiations since June 2024, but multiple inter-union talks have taken place since.
The ILA and USMX current contract expires on Sept. 30th -but there is still time to reach a deal.
ILA represents 25,000 workers across 36 ports on the US East Coast and Gulf Coast - a work stoppage of any duration will take multiple days to clear and could affect hundreds of inbound container ships.
West Coast is reported unlikely to strike in solidarity, as their contract is ratified as of August 2023.
Cargo being diverted to the West Coast is not as much as anticipated, but could increase as we get closer to the end of September.
Our advice:
If there is cargo in transit with an expected arrival date beyond September 20th or yet to get on a vessel - try to divert or schedule to a West Coast port, if possible.
Overland transport costs will need to be compared with the aspect of minimal delays & reliability if this route is taken.
For cargo that cannot be diverted from an East Coast or Gulf port, be willing to be patient and make alternate plans with your project management in case goods are heavily delayed, such as retaining existing case goods as needed.
If cargo is headed to a Gulf or an East Coast port in the next week, the cargo should be able to leave the port for delivery prior to the 30th of September.
However, be wary of increased congestion at the local terminals as shippers race to get their product picked up ahead of the deadline.
Remember, it can take multiple days to pull a container from a local terminal even with normal scheduling, and customs clearance is always a factor.
As we have been watching, the ILA (International Longshoremen’s Union) and the USMX (United States Maritime Alliance) are nearing the end of their current contract on Sept. 30, 2024, which could mean a possible strike across 36 ports on the East and Gulf Ports on October 1, 2024.
Since our last report on Sept. 5, 2024, the ILA and USMX have still not met for negotiations. While speculation on whether or not a strike will occur, there is still time to reach an agreement.
But if an agreement is not reached, what should we do?
Our advice:
If cargo is headed to a Gulf or an East Coast port in the next week, the cargo should be able to leave the port for delivery prior to the 30th of September.
However, be wary of increased congestion at the local terminals as shippers race to get their product picked up ahead of the deadline.
Remember, it can take multiple days to pull a container from a local terminal even with normal scheduling, and customs clearance is always a factor.
For cargo that cannot be diverted from an East Coast or Gulf port, be willing to be patient and make alternate plans with your project management in case goods are heavily delayed, such as retaining existing case goods as needed.
What about the West Coast?
As we have suggested, some shippers have turned to the West Coast Ports to guarantee their cargo getting into port on time, but recent reports indicate that many shippers are taking a chance and sticking to their original plan of shipping to East Coast ports. This has been indicated by months of elevated numbers of imports at the West Coast, even since the beginning of 2024.
While there may be some concern about the West Coast worker’s union, ILWU (International Longshore & Warehouse Union) striking in solidarity, there is little evidence to support that this work stoppage would be more than a day. The ILWU ratified their contract in August 2023, and the West Coast has been relatively on track with capacity and minimal delays, bar the delays caused by rail and the rail strike in Canada in August 2024.
As we reported in our September Port Report, the US has seen a rise in imports, with July 2024 being the 3rd largest month to date for import containers, and the West Coast port share is ahead of the East Coast by a wide margin with minimal delays. The West Coast, particularly the LA and Long Beach California ports, are equipped to handle elevated capacity and are doing so right now with minimal delays.
However, diversions to the West Coast, and the potential peace of mind will need to be balanced with the overland transport costs.
We will continue to provide updates as the situation evolves. Please speak with your Freight Project Manager should you have any concerns, to discuss potential impacts on your specific project, and what other options might be available.
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