After weeks of disruption, the International Longshoremen’s Association (ILA) strike has ended with a 90-day extension for a final agreement. This provides a reprieve for businesses and the global supply chain with only several lingering concerns that shippers and logistics managers need to consider as they prepare for what comes next. The master contract, addressing critical issues such as automation at U.S. ports, must still be signed by January 15, 2025.
Port Congestion and Vessel Delays
In the coming weeks, U.S. ports, particularly on the East Coast, will face congestion and vessel delays. With roughly five weeks expected for this backlog to clear, businesses should prepare for ongoing challenges in the flow of goods. Cargo that has been delayed for the past week will begin to flood the ports, straining operational capacity as terminals work to recover.
US Exports and East Coast Availability
The availability of U.S. exports from the East Coast will also be impacted, as carriers replan bookings and clear the buildup of cargo. Businesses reliant on East Coast ports for export shipments should anticipate delays.
Volume Shifts to the West Coast
Amid this recovery period, the U.S. West Coast is likely to see an increase in cargo volume, as businesses pivot their supply chains to more operational ports. Expect possible congestion at West Coast ports.
Vessel Delays from Asia and Europe
Vessels arriving from Asia and Europe will also feel the pressure as they enter congested U.S. East Coast ports. Vessels may be forced to wait offshore until the ports are able to process them. The backlog from the strike will have a global impact, affecting both inbound and outbound shipping lanes.
Worldwide Logistics Group’s Recommendations
At Worldwide Logistics Group, we continue to monitor the situation closely and offer tailored solutions for businesses navigating these ongoing challenges. Our recommendation for critical cargo is to utilize expedited ocean, air and rail services to mitigate the impact of delays on both the U.S. East and West Coasts.
For businesses looking to bypass coast-to-coast delays, transloading cargo in Los Angeles continues to be an effective solution. This measure allows cargo to be re-routed across the U.S. with minimal downtime, offering a more reliable alternative to congested East Coast ports.
Strategic Planning is Key
As we look ahead, it’s clear that this temporary resolution has bought the industry time to clear the backlog, time to reassess supply chains and time to prepare for potential disruptions in January when the master contract must be finalized. Strategic planning and agility are important and Worldwide Logistics Group is committed to providing our clients with the flexibility and solutions needed to navigate this evolving landscape. Please contact us for more details on the strike.