Strike Shuts Down Eastern U.S. and Gulf Ports

Trade Update • Oct. 1, 2024

ockworkers on the U.S. East and Gulf Coast ports initiated a strike at 12:01 a.m. ET on October 1st, affecting 36 ports that collectively manage about half of the country’s ocean shipping volume. This situation is resulting in delays, increased costs, and widespread supply chain disruptions.

Economic Consequences Expected

The strike is anticipated to have significant economic consequences, with experts estimating daily losses in the billions. 70% of all containerized US exports, and 56% of US imports (valued ~$588 billion in 2023) will be directly impacted. Beyond operational disruptions, shippers should expect increased shipping costs as container carriers plan to impose surcharges due to the strike.

Port of Montreal Dockworkers Serve 72-hour Strike Notice

Montreal’s Viau and Maisonneuve will stay closed until Thursday October 3, 2024, at 6.59am. The 300+ workers at those two ports handle around 40% of goods (~6 million tonnes) moving through the Port of Montreal.

CBP Issues Cargo Processing Guidelines

The U.S. Customs and Border Protection (CBP) agency has issued guidelines for processing cargo and vessels impacted by the strike: CSMS # 62464633 – Cargo and Vessel Processing Guidelines due to Possible International Longshoremen’s Association Strike.

Shippers Advised to Explore Alternative Arrangements

The strike could result in up to a month of shipping delays. Shippers with cargo en route to, or scheduled for, East or Gulf Coast terminals are encouraged to consult with freight partners for alternative solutions.

Potential Government Intervention

The White House has not yet taken action, it is closely monitoring the situation and exploring options to minimize supply chain disruptions. In a recent statement, White House spokesperson Robyn Patterson encouraged the parties to continue negotiating but did not rule out future intervention. If the strike drags on, there is precedent for the government stepping in, as seen in Canada, where the government forced freight rail workers into binding arbitration after just 17 hours of a strike. A similar approach could be taken in the U.S. if the economic impact grows too large to ignore.

For questions or concerns about if your products are affected please contact us.