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1 October 2024•Article
Update: US East Coast and Gulf Coast Ports Close as ILA Strike Begins
As of midnight today, the US ILA port strike involving 45,000 dockworkers is fully underway, leading to the closure of around 36 ports across the East and Gulf Coasts. This industrial action is causing major disruptions, affecting nearly half of the nation's import and export operations.
The US port strike is officially underway as of midnight today, involving approximately 45,000 dockworkers from the International Longshoremen's Association (ILA).
The strike has resulted in the closure of around 36 ports across the US East (USEC) and Gulf Coasts (USGC), significantly disrupting nearly half of the country’s import and export activities. This widespread industrial action is causing severe delays and interruptions to supply chains.
Key issues in the stalled negotiations center around wage increases and the ILA's insistence on halting the automation of port operations, which has been opposed by the US Maritime Alliance (USMX).
For further details on the strike's impact, please refer back to our FAQ article.
In addition to previous updates, carriers have responded by implementing the Force Majeure clause allowing services to be terminated at destinations other than the original port of discharge. Unfortunately, costs incurred because of this diversion would be accountable to the cargo owner.
Should your cargo be impacted by this, a Woodland representative will be in contact as soon as possible.
Secondly, alongside the import surcharges advised in our most recent update, export surcharges are now in effect. CMA CGM enacted a $800 per 20' and $1000 per 40' surcharge on exports from USEC and USGC ports from October 11.
ACL have also announced a Network Congestion Fee. Effective from October 20, all containers originating in the US, including US cross border traffic, destined for Europe, UK, or Scandinavia will be subjected to this fee, set at $1000 per 20' or $1250 per 40' container.
At Woodland Group, we will continue to monitor the situation closely across the US and will work to provide tailored solutions to our customers as the situation develops. For questions on your supply chain planning, please contact your local Woodland representative or contact us here.
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