The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) are currently in protracted labor negotiations, with a critical deadline of January 15, 2025. If a strike is called, expect vessel operations to halt by midnight on January 14, 2025.
Failure to reach an agreement by this date could result in labor strikes that would significantly impact major U.S. East and Gulf Coast ports. It is advisable for shippers and forwarders to begin contingency planning and alternative routes.
Potential impact would disrupt operations at ports including major hubs – New York/New Jersey, Norfolk, Charleston, Savannah, Houston, Miami, and Port Everglades. In the event of a work stoppage, US East Coast and Gulf terminals may halt operations, and gate and rail services could be suspended.
Mitigation options include alternative cargo routing through the U.S. West Coast and Canada which may offer a way to bypass affected areas and maintain supply chain continuity though congestion could become an issue.
Managed intermodal service would provide a single-source solution with end-to-end control and visibility. This option can be particularly beneficial during periods of significant disruption.
Decisions to reroute cargo should take into account transit times, costs, and specific shipping requirements. While these services may not be optimal under normal circumstances, they offer a practical solution to navigate potential challenges posed by labor strife.
Please stay in touch with your John S. Connor representative, as we continue to monitor updates as the negotiations unfold.
