East Coast Port Strike: Impacts on Shipping
Due to unresolved negotiations between the International Longshoreman’s Association (ILA) and United States Maritime Alliance (USMX), ILA workers have planned a strike beginning at 12:01 AM at 14 different ports along the East and Gulf Coast.
With about 85,000 members, the ILA, largely employed by the USMX, works at 36 ports that stretch from the state of Maine all the way through Texas.
What Ports Are At Risk?
The main concern is for the 14 ports that fall under the Master Contract between the ILA and the USMX and whose contract expires Monday night. It’s estimated that roughly 45,000 longshoremen are prepared to stop working at the following locations and initiate an operational shutdown.
- Port of Boston, MA
- Port of New York/New Jersey, NY
- Port of Philadelphia, PA
- Port of Wilmington, NC
- Port of Baltimore, MD
- Port of Norfolk, VA
- Port of Charleston, SC
- Port of Savannah, GA
- Port of Jacksonville, FL
- Port of Tampa, FL
- Port of Miami, FL
- Port of New Orleans, LA
- Port of Mobile, AL
- Port of Houston, TX
Between these 14 ports, over $2 billion worth of cargo can be handled on a daily basis. A closure at any of these ports, let alone all of them, has the ability to delay billions of dollars worth of containerized shipments that move in and out of the country through the East and Gulf Coast ports.
What Industries Are Most Impacted?
All manner of goods are handled at these ports, but the impact will be particularly felt in the following industries:
- Retail
- Agriculture
- Manufacturing
- Pharmaceuticals
- Automotive
For the agriculture industry in particular, ports in the Gulf and Florida represent the main avenues for refrigerated freight. Produce entering the country from South America and the Caribbean is on a strict timeline, so companies unable to move cargo potentially face complete product loss.
For retail customers hoping to get in their goods ahead of peak holiday season days, there is a real danger of product shortages and major delays.
Likewise, healthcare supply providers may need to plan for delays involving critical need medications such as insulin and various antibiotics. At the moment, over 90% of U.S. pharmaceutical imports could be impacted.
How R+L Global Logistics Can Help
If you have cargo currently sitting in one of the ports mentioned, contact R+L Global Logistics for overland truck and rail options to expedite your shipments out of port. We offer expedited services and expansive port drayage options to get your cargo out.
For vessel cargo destined for any of these locations, we can potentially assist you with further freight-forwarding services to divert your shipment to a secondary location where port services are available.