ILA Strike Shuts Down East/Gulf Coast Ports
NOTE: This Post will be updated wth more information as we get it. Additional information will be added at the bottom and date stamped.
Efforts for the U.S. Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) to reach a new labor agreement by today’s deadline have failed. Barring any surprise developments a dockworker’s strike will shut down US East and Gulf Coast ports effective 12:00am on October 1, 2024.
We’ve done a quick summary of answers to some frequently asked questions.
What does this mean for port operations?
All operations at cargo ports on the U.S. East and Gulf Coasts will cease on October 1. It will not be possible to pick up or drop off containers or cargo at terminal facilities. The loading and unloading of vessels will be suspended.
What are the implications for refrigerated cargo (reefer containers)?
With dockworkers on strike, there will be no personnel available at terminals to provide electrical power to reefer containers. Temperature control of any kind for in-gated, on-port reefer containers will not be possible.
What will happen to import freight currently on a vessel en route to an affected port?
Falcon is maintaining daily dialogue with the major steamship lines and will work with customers on diversion options as and if they become available. As of right now, most carriers are taking a ‘wait and see’ approach, meaning that there is no concrete plan to divert cargo or ships.
What do I do with off-port containers that need to be returned to the port?
Falcon has worked closely with clients to minimize the number of containers that are off-port pending return on or after October 1. Unfortunately, port facilities will be unable to in-gate either loaded export containers or empty import containers being returned to port. Any containers off-port during the strike will be subject to per diem as per the shipping line’s terms. Falcon will work with clients that still have containers off-port on temporary storage solutions, but this will be subject to per diem container and chassis use rates.
Some terminals have stated that they will extend free time and waive per diem charges. This should not be assumed unless verified by the terminal. The Falcon customer service team can work with you to evaluate the policies at the relevant terminal.
I have cargo that needs to ship now. What do I do?
Our customer service teams are working with clients on a variety of contingency plans tailored to client budgetary and timing needs. These range from seafreight sailings using unaffected ports, to airfreight options.
How do I stay ahead of developments?
Falcon will continue to keep clients posted on the status of the port strike on our website, and by e-mail.
UPDATES:
10/2: On the second day of the strike, little progress has been made. Some carriers have started declaring force majure which may allow carriers to offer alternative places of delivery; suspend and store deliveries; or “abandon the carriage of the goods and place the goods at the merchant’s disposal at any place or port which the carrier may deem safe and convenient, whereupon the responsibility of the carrier in respect of such goods shall cease”.
In such cases, legally, the voyage will be considered complete. It will be the beneficial cargo owners' responsibility to collect their Cargo from wherever the cargo is discharged at their own cost and redeliver it to their facility.
10/3: Dock workers are set to return under a tentative agreement between the ILA and USMX.
While the deal still requires ILA ratification, it is expected to be finalized, and the Union has committed to resuming work on Friday, October 4th.
However, the strike’s impact has caused a backlog that may take up to a month to resolve fully.
Compass will continue to monitor the situation closely and work diligently to ensure that all shipments proceed smoothly.