US East Coast dockworker strike: Temporary resolution but risks remain for January

While a tentative agreement between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) has paused the strike, a final resolution must be reached in January 2025, or further disruption could occur.

The recent US East and Gulf Coast dockworker strike, which began on 1st October 2024 and lasted three days, caused significant disruptions across 36 key ports, including New York, Savannah, and Houston.

During the strike, over 50 vessels were anchored offshore, impacting approximately 1.4% of the global container shipping fleet. Carriers including CMA CGM, ONE, and APL declared force majeure, leading to potential rerouting, delays, and added costs for shippers. This has highlighted the importance of securing comprehensive marine insurance to mitigate risks such as unexpected storage costs, rerouting, and delays.

Though some cargo was rerouted to alternative ports in Canada and Mexico, these measures provided limited relief due to limited capacity and congestion at those facilities.

With another 100 vessels en-route the length of time required to clear the backlog remains uncertain, and the resulting congestion could persist well into Q4. Additionally, carrier surcharges are expected to remain in place on all cargo to and from the US, further increasing costs for shippers.

If the ILA and USMX fail to reach a final agreement by January, the resumption of the strike could lead to significant global supply chain disruptions. Nearly 50 vessels were affected during the initial strike, and this number could rise, with an estimated 2.22 million TEU of cargo capacity tied up by the end of the month if no resolution is found

To discuss the current situation and how Metro can protect your supply chain, please EMAILAndrew Smith, Chief Commercial Officer.