ILA Port Strike Update: What You Need to Know

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Oct 24, 2024

ILA Port Strike Update: What You Need to Know

Update as of October 24, 2024

As we move into late fall, it appears imports may be slower than anticipated in November and early December. However, we could see a surge in frontloading from shippers in the second half of December as they prepare for the upcoming Chinese Lunar New Year and the continuing International Longshoremen’s Association (ILA) negotiations.

Key Dates to Remember

Current ILA Contract Expiration: January 15, 2025
Chinese Lunar New Year: January 29, 2025 (factories typically close for 1-2 weeks)

Other Notable Headlines

In September, China’s exports grew at a slower pace of 2.4% month-over-month, with shipments to the U.S. increasing by just 2.2% over the same period.
The Port of Savannah is working to clear a backlog caused by the longshore strike and Hurricane Helene. Currently, vessels are anchored for an average of 2.5 days—compared to less than a single day previously—with around 10 vessels still waiting.

Update as of October 10, 2024

Despite the current pause in the ILA strike, U.S. importers still face significant hurdles. Import levels at major ports remain high, leading to potential warehousing and transportation cost increases for those who frontloaded shipments or shifted deliveries.

Congestion at the Los Angeles & Long Beach ports is worsening, with average truck turn times hitting a high of 79 minutes in September. To successfully navigate this challenging environment during peak season, proactive planning and collaboration are essential. For any questions or assistance needed, feel free to reach out to NTG. Our team is prepared to provide support.

Update as of September 24, 2024.

The USMX provided a statement here that the ILA continues to refuse meetings to negotiate with one week left before the Master Contract expires.

Many impacted ports are sharing updates on what would happen should a strike occur. This will include many operations stopping on Monday, September 30th (this includes picking up any containers, rail operations and import reefers).

In the event of a work stoppage, all operations will be ceased, including but not limited to gate, vessel and rail operations until the stoppage ends. Loads remaining on the terminal will not be available during this time.

The recent news of the upcoming strike by the International Longshoreman Association (ILA) has sent ripples through the industry, raising concerns about the potential impacts on operations, imports, and overall supply chain efficiency.

The Situation at a Glance

The ILA, representing dockworkers across the East Coast and Gulf Coast, is gearing up for a strike with the United States Maritime Alliance (USMX). Negotiations regarding the master labor contract have hit an impasse, with the contract set to expire on September 30, 2024. All indications suggest that no significant progress has been made, setting the stage for a strike effective October 1st.

Key Strike Objectives

The ILA’s primary objectives include an 80% wage increase and limitations on terminal automation. The demand for higher wages stems from the profits reaped by Steamship Lines and Ports during the COVID-19 pandemic. Additionally, the ILA is adamant about preserving jobs for its members by restricting terminal automation, aiming to ensure that tasks in ports are carried out by human labor rather than machines.

What you need to know:

Should the strike proceed, ports from Maine to Houston, TX, covering almost half of US imports, would come to a standstill on October 1, 2024.
The impact of each day these ports remain closed would lead to approximately six days’ worth of backlog, significantly disrupting supply chain operations and causing ripple effects across various industries.
There are no more scheduled negotiations between the ILA and USMC on the calendar prior to the expiration on September 30, 2024

Need help?

At Nolan Transportation Group, we understand the challenges that such disruptions pose to businesses. Rest assured, we have contingency plans in place to support our customers through these uncertain times. Here’s what you need to know:

Drayage Services: We offer comprehensive drayage services across all US markets. In the event of import rerouting, we stand ready to provide seamless support wherever your shipments may go.
Warehousing Solutions: With our warehousing facilities, we can help store and manage your inventory efficiently, ensuring smooth operations even amidst disruptions in the supply chain.