At Gallagher Transport International, we want to inform you of developments affecting transportation and logistics across the U.S. East Coast and Gulf ports. The looming threat of strikes are potentially happening October 1, 2024, and can disrupt the flow of shipments into the U.S. leading to delays, increased costs, and shortages in a wide range of industries.
Key Points:
Strike Details: Negotiations are up in the air between The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) where ILA plan to conduct a strike if a new contract has not been agreed upon by October 1st.
In light of this news, The Federal Maritime Commission (FMC) has issued that all FMC regulations will remain in “full effect” if stoppage does occur. FMC regulations require that demurrage and detention fees serve as legitimate incentives to encourage cargo movement.
Affected Ports: Port Closures could go into effect with the potential of 36 to shut down and a significant amount of trade being halted mainly on the East & Gulf coast. Newark; Savannah; Houston; New Orleans to name a few.
Impact:
- Shipping Delays – Delays in cargo movement and potential backlog.
- Increased Costs – Due to limited availability and increased demand for alternative shipping routes.
- Supply Chain Disruption – Shortages or increased lead times.
Recommended Actions at This Time:
Review logistics: Adjusting your transportation and inventory plans by implementing alternative routing particularly to West Coast ports. Look for any vulnerabilities due to port disruptions.
Communicate with Suppliers: Open lines with your suppliers to manage expectations and adjust orders as needed.
Stay Informed: Monitor updates from port operators and transportation authorities for the latest updates which keep both you and your customer up to date.
Update – Currently, the APM port in NYC/EWR are opening on Saturday, 9/28 from 6am-4pm to help move containers through before the potential strike.