Client Advisory: ILA Strike at East & Gulf Coast Ports – October 1

Client Advisory: ILA Strike at East & Gulf Coast Ports - October 1

WHAT'S THE LATEST

On October 1, roughly 25,000 International Longshoremen's Association (ILA) union members across 14 US East Coast and Gulf ports went on strike as they were unable to reach a new labor agreement with the United States Maritime Alliance (USMX).

WHAT WE KNOW

• The strike is the first East Coast dock strike since 1977, closing 14 major ports from Maine to Texas including Baltimore; Boston; Charleston, South Carolina; Jacksonville, Florida; Miami; Houston; Mobile, Alabama; New Orleans; New York/New Jersey; Norfolk, Virginia; Philadelphia; Savannah, Georgia; Tampa, Florida; and Wilmington, Delaware.
• West Coast ports are open.
• A strike may impact more than 68% of all containerized US exports and roughly 56% of US imports.
  • For context, the value of containerized imports at those 36 ports amounted to $588 billion in 2023.
• For every week the strike continues, Oxford Economics analysts anticipate it would cost the economy $4.5 billion to $7.5 billion.
• As of 10/1, the White House stated they are closely monitoring the strike, but believe collective bargaining is the best way to resolve the strike.
• Depending on the length of the strike, it may result in shortages of consumer and industrial goods, raw materials, food shipments and pharmaceutical products, which could then lead to potential price increases.
  • However, consumers are not likely to be impacted by the strike right away as many companies have prepared by diverting shipments to West Coast ports or importing goods earlier than usual.
• As a result of the strike, you can expect severe congestion and halted operations at these major ports.
  • For each day the ports are shut down, it is estimated that it would take nearly a week of recovery.
  • Warehouses and transportation hubs are expected to face delays but may be manageable short term.
  • Trucking and rail transportation are impacted and may lead to higher costs and longer delays.
• The ILA confirmed that cruise ship operations are unaffected by the strike, and military shipments will continue.

WHAT'S NEXT?

As your logistics partner, we are ready and able to pivot quickly. Our team is monitoring the situation and working with clients directly to address their specific needs.

We will frequently communicate and advise on the situation as more details become available.

If you have questions, please reach out to your SEKO representative, or email us at [email protected].