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Tens of thousands of dockworkers are on strike at ports along the US East and Gulf Coasts, cutting off the flow of many of the country’s imports and exports. With the market currently priced for a soft landing for the US #economy, it’s not ideal. Businesses have been aware of a potential strike for more than a year, so many have prepared with record shipments ahead of time. The economy can withstand a shutdown of the ports for a week, but beyond that, the impact to the economy could be significant, in my view. Negotiations with the International Longshoremen’s Association are ongoing, and offers to increase wages by 33% and 50% have been made. Ultimately, this comes down to automation and how to protect jobs as the ports become less reliant on humans. US ports risk falling behind other nations concerning automation. The solution to this strike will likely include guarantees to be workers and retraining to keep jobs in other areas as automation happens. The soft-landing scenario holds, for now. The longer the strike lasts, the bigger the risk to this optimistic outlook. Our expectation is that a deal will be made in the coming days.

Good news for a change: The strike at Gulf Coast and East Coast ports that began on Tuesday is over. The ILA and USMX have agreed on a significant (62%!) increase in wages, according to media reports. Talks will continue on other issues (e.g., automation) until Jan. 15, 2025. The strike targeted container terminals. So it posed a limited immediate threat to steel, most of which is handled at breakbulk facilities. But mills, traders, and key end markets like automotive and construction could have been hurt if it the work stoppage dragged out. #smusteel #steel #steelmarket #supplychain #logistics https://lnkd.in/eXeySKZT

Starting October 1, 45,000 dockworkers along the U.S. East Coast and the Gulf of Mexico are threatening to go on strike. If the strike proceeds, ports will have to close, which will have a massive impact on the supply chain. Economists from JPMorgan have calculated that a port strike could cost the U.S. economy $5 billion per day. This corresponds to 6% of the U.S. gross national product. According to analysts, it will take approximately six days for each day of the strike to clear the resulting backlogs. Container shipping companies have announced so-called strike surcharges. This surcharge is necessary to cover the higher operational costs that will be incurred due to service disruptions, according to the shipping companies. The rates vary by carrier. The surcharge applies to containers imported into ports on the U.S. East and Gulf coasts, including Boston and Houston. Some carriers will also apply it to export containers. The dockworkers are demanding a significant wage increase to compensate for inflation and are opposing terminal automation, as they fear it will lead to job losses. Additionally, they want a share of the profits that shipping companies are making due to high freight rates, driven by strong demand for container transport and disruptions to shipping caused by unrest in the Red Sea due to attacks by Houthi rebels from Yemen. To discuss all available solutions and to minimize delays, additional costs, and disruptions, we recommend that you contact us. #Strike #NorthAmerica #Logistics

🚢 Potential Strike at US East and Gulf Ports: What You Need to Know 🚢 A looming dockworkers’ strike at 36 ports from Maine to Texas could significantly disrupt US shipping traffic, affecting 60% of the nation’s trade. If no contract deal is reached by next week, 45,000 members of the International Longshoremen’s Association (ILA) may walk out, marking their first strike in nearly 50 years. This could cost the US economy up to $7.5 billion per week. Impact on Major Ports: The strike could close five of the ten busiest ports in North America, including New York and Charleston. Economic Consequences: Over 50% of US containerized cargo imports and 15% of the global container fleet could be affected. Wage Demands: The ILA is pushing for a 77% wage hike over six years, significantly higher than the 32% raise West Coast dockworkers received last year. Holiday Season Pressure: With $34 billion worth of goods en route to affected ports, shippers are racing to deliver before a potential work stoppage disrupts holiday shopping inventories. Cargo Diversions: Carriers are already diverting shipments to West Coast ports, anticipating delays of 4 to 6 weeks. While some non-port activities like inland rail ramps may continue, port closures will significantly reduce rail services. The situation remains fluid, with ongoing discussions on managing operations if a strike occurs. Stay tuned for updates as this situation develops. 📦🚛 Source: JOC, Freight Waves, Shipping Watch, USMX, Sherwood News #SupplyChain #Logistics #Shipping #PortStrike #TradeDisruption #Economy #HolidaySeason #Freight

⚠ Warning: Deadline to Avoid The ILA Port Strike is Almost Here! ⚠ East Coast and Gulf Coast ports have closely monitored the negotiations between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) for the past few weeks. Unfortunately, no agreements have been made yet, and the deadline is September 30th, which is only a few days away. A work stoppage will begin across the East and Gulf Coast ports on October 1st if the deadline is not met. Ports have extended their hours for this week, encouraging shippers to pick up their import shipments before the end of the day on September 30th. The Port Authority of New York and New Jersey's Port Director, Bethann Rooney, also mentioned that refrigerated and hazardous materials containers are a top priority, as a strike will ruin these commodities. President Biden has stated he will not intervene in the ILA-USMX negotiations, but this could change if a strike occurs. The Canadian rail strike last month proved that a strike could be put down if the government recognizes the need for shipping. A work stoppage will hit the economy harshly, potentially raising prices on essential goods and creating shortages. With the holiday season and presidential elections around the corner, this strike could have devastating effects. However, all shippers and carriers can do right now is hope the ILA and USMX come to an agreement before September 30th. We will have more updates as this story develops. #LaborNegotiation #portstrike #ILAstrikedeadline #supplychain #TradeImpact

With ports strike imminent on East Coast, Gulf, truckers, rails are scrambling to move billions in cargo before midnight shutdown With an impending strike at East Coast and Gulf Coast ports, logistics companies are working urgently to move as much cargo as possible before the shutdown, which could significantly harm the U.S. economy. Over 54,000 TEUs (valued at $2.7 billion) arrived Friday at the 14 affected ports. The strike would severely disrupt supply chains, particularly for goods like refrigerated produce. Major companies, including Walmart and Amazon, are at risk, and analysts warn ocean freight rates could rise by up to 50%. The strike could cost billions and impact inflation and consumer prices, with no negotiations planned. Stay Informed: https://lnkd.in/g5J7AUqN

Is your company at risk of being impacted by the potential US East and Gulf Ports Strike? 🚢 Check out below details from my colleague Josh Harris

Well, brace yourselves for what’s to come as a massive East Coast/Gulf Coast Ports Strike looms on the horizon starting tonight at midnight. The International Longshoremen’s Association (ILA) announced that its 85,000 members, supported by dockworkers and maritime workers globally, will commence strike action at 12:01 am on Tuesday, October 1. This strike will impact all Atlantic and Gulf Coast ports from Maine to Texas. With negotiations at a standstill and no plans for talks before the impending deadline, a ports strike could jeopardize the progress made in curbing inflation and reducing consumer prices across various goods. Historically, ports strikes have resulted in ocean carriers capitalizing on higher freight rates and additional charges. Analysts anticipate a potential surge of 20%-50% in rates, affecting a significant portion of Maersk's volume. UBS projects a revenue increase of over $1 billion if rates spike by 30% within two quarters. Our One Dunavant team continues to monitor the situation and providing updates as we work with our customers to provide them with alternative solutions. We stand ready to provide you with tailored Logistics Solutions and be your Solution! #OneDunavant #supplychainsolutions #logisticsmanagement #oceanfreight #tariffs #Crossbordersolutions #Crossborder #nearshore #onshore #4PL #3PL #trucking #intermodaldrayage #warehousemanagement #logisticssolutions #Dunavant #freight #solutions #experience #warehouse #LTL #FTL #USMX #ILA #PortsStrike

New month...new potential strike for shippers to consider. This time with US East Coast and Gulf Coast ports, whose labor contract expires Sept 30. According to Mia Ginter, director of North American Ocean for the freight forwarder, reactions among companies are currently split in two. “They can wait it out and address any disruptions if a strike happens. Or they can make contingency plans now to reduce the impact a strike would have on their shipments and their balance sheets. No industry or region would be immune to the ripple effects of this major disruption. Both U.S. importers and exporters need to consider how a port closure would impact their freight now,” says Ginter. As most ocean freight takes 20-45 days to arrive, orders expected to arrive around Sept 30 are either on a ship or being planned today, so the time for those decisions is now. Unlike the railroad dispute in 2022, this time the President can’t step in and force a contract on the dockworkers unless a law is passed, but a cooling off period can be called after a strike begins. According to Ginter, “If the government doesn’t intervene before a potential strike starts, it would almost certainly intervene after. Stoppages of the East and Gulf Coast ports would be devastating to the economy." #shipping #oceanshipping #ports #portstrike

The imminent dockworker strike on the U.S. East and Gulf coasts is shaking up global supply chains. With critical sectors like pharmaceuticals and manufacturing at risk, industries are bracing for potential shortages, delays, and increased shipping costs. However, last-minute negotiations are ongoing, and there's still a chance the strike could be averted, keeping ports operational. But if a lengthy strike occurs, its ripple effects could impact trade flows for months, with businesses adapting to the new landscape.  #GlobalTrade #SupplyChain #EconomicImpact #Logistics     Learn more: https://lnkd.in/eCTUdiBX