BREAKING NEWS: Potential Port Strike

Potential Port Strike on the US East and Gulf Coast: What It Means for Your Projects

At DAVACO, we are committed to keeping our clients informed about industry developments that could impact their business operations. We recently received news from our sister company, Crane Worldwide Logistics, regarding a potential strike at the US East and Gulf Coast ports, which could affect supply chains and project timelines, including store openings and facility updates.

What’s Happening at the US East and Gulf Coast Ports?

The International Longshoremen’s Association (ILA), North America's largest union of maritime workers, represents over 85,000 dockworkers. Longshoremen play an instrumental part of port operations, handling freight including the loading and unloading of cargo arriving by sea. Their master contract, covering all major ports along the US East and Gulf Coasts from Maine to Texas, is set to expire on September 30, 2024.

In early September, the ILA indicated its support for a potential strike starting October 1, 2024, if no new agreement is reached with the United States Maritime Alliance. The union's key demands include significant wage increases and stricter protections against automation at marine terminals. 

How Could This Impact Your Operations?

A strike at these ports could heavily disrupt logistics operations, particularly for ocean freight shipments coming into the US from Europe and Asia. It’s estimated that 43% of the total import container volume to the US flows through these ports, so any stoppage would result in significant delays and backlogs. Even a short strike could lead to weeks of congestion once operations resume.

Key imports, including machinery, vehicles, and other goods that are crucial to many businesses, would likely face delays. Additionally, the potential shift in freight from the East Coast to the already congested West Coast ports could exacerbate the situation, causing further delays.

What Are Your Options?

If a strike occurs, businesses will need to consider alternative logistics strategies to minimize disruption:

• Shifting to West Coast Ports: Increased freight traffic on the West Coast will require careful planning due to existing congestion. Expect longer lead times if using this route.

• Exploring Air Freight Options: Air freight might be a viable alternative for urgent shipments, though capacity will be limited, and demand will be high. Major hubs such as Atlanta, Chicago, and Houston could serve as strategic points for rerouting goods.

• Considering Canadian Ports: While some businesses may consider Canadian ports, it's important to note that they might struggle to handle the increased volume and face potential rail disruptions.

Stay Prepared and Informed with DAVACO

We understand that disruptions like these can affect your project timelines, such as store openings or facility updates. At DAVACO, we are here to help you navigate these challenges. If you have concerns about how this potential strike could impact your upcoming projects, reach out to our team. We can discuss alternative options to help ensure your project stays on track, even in uncertain times.

Contact us today to discuss your project needs and how we can support you through this period of potential disruption.

Find more details in the original Crane Worldwide Logistics article here.