A U.S. port strike has officially begun, marking the first such coast-wide disruption on the East and Gulf coasts since 1977. Here’s a breakdown of what’s happening, what’s affected, the expected impact, and what shippers and cargo owners can do to mitigate the fallout.
As of October 1st, dockworkers at 36 ports from Texas to Maine have walked off the job, bringing container traffic to a standstill. This strike follows months of stalled negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX). Despite a last-minute offer from USMX, the union rejected the deal, citing concerns over wage increases and protections against automation. The shutdown affects some of the busiest ports in the U.S., including the Port of New York and New Jersey, and the Port of Houston
Ports: 36 major East and Gulf Coast ports, responsible for about 60% of America’s containerized trade, have ceased operations. This includes five of the ten busiest ports in North America
Goods: Billions of dollars’ worth of consumer goods are at risk of being delayed. Shippers were already diverting cargo to West Coast ports in anticipation of the strike, but the impact is still severe. The affected ports handled $588 billion worth of containerized imports last year.
Industries: FMCG, retail, and consumer goods are expected to be hardest hit, especially with peak holiday shipping season upon us. Agricultural exporters, like those shipping dairy and perishables, face a serious risk, as goods may spoil before reaching their destinations
Shipping Delays: Companies shipping goods to or from the U.S. through these ports can expect severe delays. Even if the strike is resolved quickly, clearing the backlog could take weeks.
Cost Increases: Demurrage fees and alternative shipping methods like air freight will push costs higher for shippers. Some goods may need to be rerouted through already congested West Coast ports, compounding delays (
Perishable Goods at Risk: Agricultural products like dairy and fresh food are at the greatest risk of spoilage. In 2015, a West Coast lockout led to similar consequences, with many containers of perishables spoiling
If possible, shift shipments to West Coast or Canadian ports. However, keep in mind these locations are already seeing increased volumes, which could lead to congestion
Work closely with your logistics providers to negotiate new routes or transportation modes, such as rail or air freight. While this may be more costly, it can prevent extended delays and mitigate the risk of spoiled goods.
Technology like Cargoo can provide high-quality visibility of where containers are located and allow you to proactively manage disruptions before they escalate.
This strike is likely to have a lasting effect even after it’s resolved. Analyze your inventory now, check your contract conditions and anticipate extended lead times, prepare your supply chain to withstand longer-than-usual delays.
Cargoo offers powerful tools to help you stay ahead in the ongoing port strike. With strategic visibility, you’ll have high-fidelity track-and-trace capabilities for your shipments. Our exception management system alerts you to potential disruptions with customizable notifications. Cargoo’s dashboards help you identify affected shipments as well as demurrage and detention free days to help you make informed decisions. And there is more, our allocation features allow you to replan and adjust shipments, minimizing the impact of delays.
