East Coast Port Strike Looms

Thirty-six ports are likely to shut down on October 1, disrupting the U.S. supply chain.

September 26, 2024

U.S. ports from Maine to Texas are preparing for a potential shutdown on October 1, when the contract between the International Longshoremen’s Association and the United States Maritime Alliance expires, reported the Associated Press. The strike would shut down 36 ports that handle roughly half of the nation's cargo from ships.

This will be the first national longshoremen’s strike in the United States since 1977. “Experts say a strike of even a few weeks probably wouldn’t result in any major shortages of retail goods, though it would still cause disruptions as shippers reroute cargo to West Coast ports. … A prolonged strike would almost certainly hurt the U.S. economy,” AP wrote.

Griff Lynch, CEO of the Georgia Ports Authority, told AP in an interview, “We should probably expect there to be a work stoppage and we shouldn’t get surprised if there is one. The question is: How long?”

Lynch also stated that every day of a port strike could take up to a week to clear up once union workers return to their jobs.

According to an International Fresh Produce Association member alert, the White House has publicly indicated it is not considering the use of Taft Hartley provisions to prevent a work stoppage from occurring.

Various retailers, manufacturers and other importers have been preparing for the strike by rushing in apparel, home goods, machine parts and other items ahead of the looming strike deadline to avoid having cargo stuck, reported Reuters.

Lynch told AP that’s one reason container volumes in Savannah increased 13.7% in July and August compared to the same period a year ago.

Other imports that are likely to be affected by a strike include wine and auto parts from Europe. Rerouting those goods to the West Coast is challenging because it could require difficult-to-find transit through the Panama Canal, air freight or other time-consuming or costly measures, logistics experts told Reuters.

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