Industry News

ILA Strike: What You Need to Know

October 1, 2024

The International Longshoremen’s Association (ILA) strike has officially begun, causing widespread disruption to supply chains across the East and Gulf coasts. With over 36 major ports affected, including some of North America’s busiest, this strike is expected to significantly impact U.S. imports and global trade. In response, Eastern Shipping Worldwide is committed to offering critical insights, delay-mitigation strategies, and expert support to help your business navigate these challenges.

Overview of the ILA Strike

The ILA strike affects over 85,000 longshoremen and has led to the closure of 36 ports along the East and Gulf coasts, including some of North America’s busiest. This disruption accounts for a substantial portion of U.S. imports—between 43% and 49%—which could result in billions of dollars in trade being affected.

Key Impacts of the Strike

  1. Port Closures: Operations at more than half of the U.S. container ports are completely halted, impacting the loading, unloading, and handling of containers.

  2. Delays: Expect significant delays at East and Gulf Coast ports, with potential ripple effects extending to other entry points due to rerouting.

  3. Cargo Disruptions: Cargo currently en route to affected ports faces risks of extended transit times, increased costs, and rerouting complications.

  4. Embargos: Ocean carriers may impose cargo embargos for shipments heading to East Coast ports.

  5. Increased Fees: Expect higher costs related to storage, demurrage, detention, chassis, and other port-related charges.

  6. Global Supply Chain Effects: The strike could cause further congestion at alternative ports, especially during peak season.

How to Mitigate the Impact

  • Delay Shipping: If possible, postpone shipments until the strike is resolved. Rerouting freight is challenging and likely to cause delays.

  • Prepare for West Coast Congestion: As cargo is diverted, anticipate heavy congestion and longer wait times at West Coast ports.

  • Expect In-Transit Delays: Cargo bound for East and Gulf Coast ports may be stranded offshore until the situation normalizes.

  • Prioritize Air Freight: For urgent shipments, air freight could be a faster option, although it is generally more expensive.

  • Consider Canada as an Alternative: While this option may have its own challenges, it can serve as a viable alternative for certain shipments.

  • Prepare for Higher Costs: Rerouting and additional fees related to demurrage, detention, and storage are likely to increase.

  • Understand Financial Responsibilities: Costs related to rerouted vessels and storage will depend on contracts and Incoterms.

  • Review Incoterms: Knowing the agreed-upon Incoterms can clarify financial responsibilities during the strike.

  • Anticipate Carrier Fee Policies: Carriers and terminals may still collect fees even during the strike, so be prepared for that possibility.

  • Communicate with Partners: Keeping in touch with vendors, customers, and supply chain partners is essential for managing the impact of delays.

How Can Eastern Support You

  • Alternative Routing Solutions
    Eastern’s extensive carrier network enables the exploration of alternative routing options for cargo, providing real-time pricing and transit updates.

  • Expert Guidance
    Eastern’s industry experts are available to help clients navigate port congestion and determine the most efficient alternative routes, assisting every step of the way.

  • Real-Time Tracking
    With Eastern’s RealStatus portal, clients can monitor their shipments in real time, ensuring full transparency with their partners.

  • Minimizing Additional Charges
    Eastern's diligent tracking and detailed record-keeping help reduce extra costs such as detention, demurrage, and other fees associated with port delays.

Additional Resources

Access the latest updates and port operating hours from the affected terminals through the links below:

 

Access the latest updates and port operating hours from theWest Coast ports through the links below: