Altair Global Relocation
09/13/2024 | Press release | Distributed by Public on 09/13/2024 15:28
How the Potential Port Strike for the East and Gulf Ports Affects Mobility & Supply Chain
Current labor negotiations between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) have reached a critical point. With the current contract set to expire on September 30, 2024, concern has been raised about a potential strike commencing as soon as October 1, 2024, should no agreement be reached.
With the upcoming expiration of the current contract between the ILA and USMX (the negotiator on behalf of the management of ports, terminals, and shipping lines), the two groups have been in dispute over wage increases, automation usage, and benefits since the negotiation talks broke down over the summer. A recent two-day meeting in New Jersey with more than 300 ILA delegates in attendance concluded with unanimous support for a coastwide strike at ports from Maine to Texas on October 1st, if a new master contract with USMX is not reached by that time.
How Would This Affect Travel and Mobility Logistics?
U.S. East and Gulf Coast ports currently handle 43% of all U.S. imports and employ approximately 45,000 port workers. Six of the nation's ten busiest ports are located in these regions, underscoring the critical role they play in the U.S. supply chain. Should the strike occur, logistics experts predict that for every week of disruption, it would take an additional 4-5 weeks to return to normal operations.
Rerouting shipments to the West Coast would cause significant delays and increased freight charges due to the surge in volume, compounded by the limited number of vessels capable of passing through the Panama Canal daily. Although routing shipments through Canada could potentially help alleviate some of the burden, current restrictions present multiple hurdles and any relaxation of these restrictions remains uncertain.
Possible Options to Reduce Impact
If the strike proceeds, possible options to reduce the impact could include the following:
- Store household goods (HHGs) at the origin until the strike is resolved to avoid transit delays
- Increase air shipment allowances to help mitigate the immediate impact of slowed sea freight
- Plan ahead by assessing the need for rental furniture at the destination, as there may be longer lead times for delivery
- Prepare for delays and increased costs that may come as a result of rerouting shipments
Altair Global will continue to monitor this evolving situation and provide updates (including potential transit delays, impact on current and pending HHG shipments, and additional costs) as they become available. Please reach out to your Altair Global representative or contact us at [email protected] with any questions.