ILA’s current labor contract, covering around 45,000 port workers, is set to expire on September 30, 2024. The ILA has expressed they will not extend it without addressing key concerns over pay, benefits and automation.

What would the potential implications be?

• Cargo would cease moving through directly affected ports
• Cargo may be diverted to other ports (such as US West Coast or Canada), which could create congestion in those ports and rail terminals
• Analysts have estimated that for every one day of strike action, it would take five days to clear the backlog
• Rates for ocean freight, warehousing and drayage may see sudden increases across the US
• Congestion on port and rail terminals causing shipping delays, higher shipping costs and possible shortage of goods ahead of the holiday season

What can shippers do to try to reduce the possible effects?

• Look at alternative routings via US West Coast or Canadian Port to utilize all-motor, rail or transloading services
• Build in additional lead times to allow for re-routing, blank sailings, revised schedules or potential congestion across all US ports and terminals
• Consider airfreight for urgent or perishable goods into or out of the US
• Ordering ahead of time to build inventory as a contingency for the holiday season
• Make use of online tracking and tracing tools to monitor goods on the water
• Prepare for potential emergency rate increases or additional costs being incurred across the US supply chain due to congestion and delays

Carriers may need to adjust their schedules to avoid or delay arrivals at USEC ports, which could lead to containers staying at origin ports longer, halting bookings to affected ports, or implementing surcharges or rate increases on US trade routes. Global consequences could include equipment shortages in Asian export centers. The government and various trade groups are closely monitoring the situation due to the potential economic impact and will be drawing up alternatives, should a port shutdown take place.

To mitigate potential implications for very time sensitive cargo, Woodland Group can assist with air export freight services to and from all US airports. We also provide live tracking tools to monitor container and vessel positions, making it easier to keep track of your goods in transit and plan accordingly.

At Woodland Group, we continue to monitor the situation closely across the US and will work to provide bespoke solutions to our customers as the situation develops to try to mitigate impact on your supply chains.

For questions on your supply chain planning, please contact your local Woodland representative or contact us here.