2024.12.06
ILA Strike - Your Guide to Dealing with Port Disruption
The International Longshoremen Association is on strike from October 1, 2024, shutting down many U.S. ports. Here's our comprehensive guide to dealing with the disruption.
Breaking news: As of 6:50 PM EST on 3 October, 2024, the USMX and the ILA have reached an agreement, ending the ILA strike.
We'll be updating our guide shortly.
The International Longshoremen’s Association (ILA), a large maritime worker’s union in the United States, has gone on strike with effect from 1 October 2024. This strike has shut down many U.S. ports and significantly disrupted U.S. and international supply chains.
In this comprehensive guide, we explain the background and likely impact of the strike and provide a step-by-step guide to dealing with the issues. This guide is updated daily, so please bookmark and check back often.
An ILA strike is currently underway
The ILA and the United States Maritime Alliance (USMX) have failed to make an agreement on several key issues, including wage increases and automation. As a result, the ILA began its strike on October 1, 2024.
This strike is the first such action by the ILA in almost 50 years. The ILA has stopped shipping activities at 36 ports, which is estimated to be costing the economy around $5 billion a day. Here are some updated figures and projections from a SEA INTELLIGENCE article posted on 2 October:
- Vessel Queues:
- After 1 week of strike: 62 vessels stuck
- After 2 weeks: 124 vessels
- After 3 weeks: 186 vessels
- After 4 weeks: 248 vessels - Capacity Loss:
- First week: 774,865 TEU (2.5% of global fleet)
- Each subsequent week: ~443,000 TEU (1.4% of global fleet)
- By end of 4 weeks: 2.22 million TEU (7.2% of global fleet) - Economic Impact:
- Estimated daily cost of strike: $300 million to $5 billion
- Potential freight rate increases: $2,000-$2,500/FFE in first week, additional $1,100-$1,400/FFE each subsequent week - Time Horizons:
- Immediate impact: Cargo stuck on vessels and in ports
- Delayed impact: Vessel capacity missing from origin regions (especially Asia) 5-6 weeks after strike start
- Post-strike: 5-6 days to clear the backlog for each day of the strike; 8-9 months for schedule stability to return - Limited Alternatives:
- West Coast ports may not be a viable option due to scheduling challenges and possible union solidarity concerns.
- Canadian, Mexican, and Caribbean ports cannot absorb significant USEC-bound cargo
Here’s how you can deal with the strike's impact and minimize disruption to your supply chain.
The impact of the ILA strike on container shipping and cargo handling
The ILA is the largest union of maritime workers in the U.S. Its members handle cargo at almost 40 container ports across the East and Gulf Coasts. Now that the ILA is on strike, the impacts are:
- Significant delays at ports, specifically East Coast and Gulf Coast entry points.
- A complete shutdown of loading, unloading, and container handling for more than half of U.S. container volume.
- Impacts all types of cargo, including containerized, breakbulk, and roll-on, roll-off (ro-ro).
- Major disruptions to cargo already on the water and inbound to affected ports.
- Carriers rerouting vessels to avoid potential delays or disruptions at affected ports. This is resulting in longer transit times and additional costs.
- Ocean carriers placing an embargo on cargo coming from the East Coast.
- Cargo becoming stranded at ports, leading to higher charges.
- Increased freight and container fees, including storage, per diem, demurrage, detention, chassis, storage, and pre-pull charges.
- Downstream impact on importers, retailers, and others in the run-up to peak season.
- Increased capacity costs and congestion for international freight.
- Global disruption and economic damage to international supply chains.
Strike action has brought more than half of the United States’ container operations to a complete halt, leaving goods stuck on ships and at ports. Importers, exporters, shippers, carriers, and others must act now.
GEODIS can help.
Ten steps to dealing with the ILA port shutdown
We’ve identified ten main ways that you can minimize the impact of the strike on your operations:
- Divert your shipments to alternate West Coast ports as soon as possible.
- Prepare for significant congestion at U.S. West Coast ports.
- Realize that freight in transit to East and Gulf Coast ports will be drastically delayed.
- Use air freight for your most urgent shipments.
- For rerouted West Coast shipments, transfer your landed cargo via intermodal and ground freight.
- Understand that options to redirect freight via Canada and Mexico may be limited.
- Prepare for higher capacity pricing rates.
- Expect increased freight and container fees.
- Understand the financial responsibility for charges and fees.
- Start working with your freight broker now to minimize costs and downtime.
Support for existing GEODIS clients
If you’re already a GEODIS client, we’ll minimize any disruptions within our control. We’ll keep you updated on any ILA strike action and the impact on your freight, transportation, or warehousing. We’ll also let you know about any surcharges or fee increases and work with you to reduce those fees where possible.
Important Note: GEODIS will not add any profit to the surcharges passed along to our clients. We understand the complex situation this strike creates and are committed to supporting you through it.
Bookmark our customer advisory page for regularly updated information.
1: Divert your shipments to alternate West Coast ports as soon as possible
If your shipments aren’t time-constrained, you’ll want to delay shipping freight until after the ILA reaches an agreement and any strike actions are resolved.
Since it’s very challenging to redirect freight already on the water, preventing your freight from leaving is your best first step. If you need to send your freight urgently, avoid shipping by ocean to East and Gulf Coast ports. Alternative options include:
- Air freight to the U.S. for your most urgent and time-sensitive products.
- Ocean freight to other destination ports, such as West Coast ports.
2: Prepare for significant congestion at U.S. West Coast ports
Many shippers and carriers have already redirected freight to West Coast ports. Many West Coast ports are already operating at full capacity, so they are very congested.
Be aware that:
- Redirected cargo from East Coast and Gulf Coast ports may be subject to embargo and could be refused, which will delay or prevent arrival and unloading.
- Carriers are preparing for “slow steaming,” which will extend transit times. Carriers may also need to anchor outside ports, further exacerbating delays and congestion.
- Storage, capacity, and inbound / outbound routes will be at a premium for West Coast ports, leading to delays and higher costs.
- Expect extensive wait times to dock and unload as West Coast ports work through the congestion.
- Try to take advantage of extended gate times at West Coast ports.
You can get the latest information on main West Coast ports, opening times, and how they're dealing with disruptions at the links below:
- Port of Los Angeles: Cargo Operations Dashboard, Latest News
- Port of Long Beach: Port Operations Dashboard, News and Press
- Port of Oakland: Media and Newsroom
- Port of Seattle: Port of Seattle Updates (main website is down due to cyberattack)
- Port of Tacoma: News
Get expert guidance on your ocean freight routing options. Talk to GEODIS today.
3: Realize that freight in transit to East and Gulf Coast ports will be drastically delayed
The ILA strike has shut down container ports from Maine to Texas across the East and Gulf Coasts. It has impacted major ports including Charleston, Houston, Miami, New Jersey, New York, and Savannah. Click on the port city names to see their daily updates and contingency planning reports related to the ILA strike. Many are expanding hours and offering extended gate times, so check these links frequently.
Freight in transit to these entry points is severely delayed:
- Ships cannot dock and unload until the strike is resolved. As of 10/1/24, The Washington Post noted that “38 container ships are now waiting at anchorages offshore”.
- Expect follow-on delays as ports clear the backlog even after ILA members return to work.
- Prepare for delays in goods entering the U.S. marketplace, and advise your retailers and supply chain partners accordingly.
- Rerouting to West Coast ports may result in an additional 10-14 days of transit time.
- Rerouting to West Coast ports could add $1,000 - $1,500 USD in costs per FEU (Forty-foot Equivalent Unit) for the port-to-port part.
Most shipping lines are announcing a $3000 USD per FEU named port charge for all cargo destined to East Coast and Gulf ports in the U.S. We anticipate a further surge in rates across all West Coast ports and modes of transport (drayage and rail).
Get updates directly from marine terminal websites
You can get the latest information and port opening hours directly from impacted terminals at the links below:
- Baltimore, MD: BAL Seagirt Marine Terminal
- Charleston, SC: CHS Wando Welch
- Houston, TX: HOU Bayport Container Terminal
- Jacksonville, FL: JAX Blount Island Marine Terminal
- Miami, FL: MIA APM
- Mobile, AL: MOB APM
- New Orleans, LA: MSY Ports America
- New York City, NY: NYC Port Elizabeth
- New York City, NY: NYC Maher Terminal
- New York City, NY: NYC Port Liberty Bayonne
- New York City, NY: NYC Port Liberty New York
- Norfolk, VA: ORF Port of Virginia - NIT/VIG
- Philadelphia, PA: PHL Packer Marine Terminal
- Savannah, GA: SAV Garden City Terminal
- Wilmington, NC: ILM Ports America
4: Use air freight for your most urgent shipments
Airfreight will likely be your best option for time-critical, sensitive, or high-value cargo. Freight forwarders can arrange for shipments between airports and integrate with ground transportation for rapid pickup and delivery to your warehouses.
GEODIS offers a range of air freight services:
- Fixed capacity and allocations at our New York and New Jersey airport hubs.
- Daily transfers between Newark, New Jersey, and JFK airports.
- Container Freight Stations (CFS) in our Keasby, NJ, and JFK Gateway facilities for cargo drop-off, pickup, and transfers.
- Established line haul routes between airports across the U.S. supporting the vast majority of the country (JFK, LAX, ATL, ORD, MIA, and more).
- Fully integrated ground transport operations between airports on the West Coast, Pacific Northwest, Midwest, Northeast, Southeast, and other transport corridors.
- Miami airport gateway to support transfers between the U.S. and LATAM.
- Complete real-time freight visibility and tracking via our IRIS online tool.
GEODIS offers comprehensive air freight services to help you deal with disruption. Discover how we can help you.
5: Transfer your landed cargo via intermodal, rail, and ground freight
During the ILA strike, carrier capacity is filling up very quickly, resulting in higher rates and transportation delays. Please be aware that:
- We continue to support freight that exited East and Gulf Coast port terminals before the strike started on October 1.
- We will remain available to help transport freight currently stuck in ports once the strike ends.
- For West Coast ports, transportation providers and ground carriers are dealing with extensive demand and congestion, which is causing delays.
- Capacity is filling up very quickly, resulting in higher costs.
For rerouted West Coast shipments, you can transfer your landed cargo via intermodal and ground freight. For shipments destined for the East Coast or Gulf Coast ports, the only action is to wait.
When you land your cargo in the U.S., you’ll need to get your containers to their destination. GEODIS is here to support you. We provide extensive intermodal and ground freight transport services and capacity solutions nationwide.
- Deeply integrated and established intermodal, FTL, and LTL transport routes serving the East, West, and Gulf Coasts and every in between.
- A network of more than 30,000 carriers providing flexible, on-demand, and reserved capacity.
BNSF rail freight
As at 10/1/24, the railway freight provider BNSF will be closing gates at Los Angeles, Portland and St Paul to all East Coast Marine Terminals. BNSF will keep gates open at Omaha, Denver and Seattle (SIG) until Wednesday October 2nd. At that time BNSF will review the port situation and reevaluate its gate closure plan.
BNSF gate closure lanes:
- LOS ANGELES-BALTIMORE, MD
- LOS ANGELES-CHARLESTO, SC
- LOS ANGELES-ELIMARTE, NJ
- LOS ANGELES-PORAPMT, VA
- LOS ANGELES-PORNIT, VA
- LOS ANGELES-NORFOLK, VA
- LOS ANGELES-SAVANNAH, GA
- PORTLAND-ELIMARTE, NJ
- PORTLAND-PTNEWTERM, NJ
- PORTLAND-NORINTERN, VA
- ST.PAUL-ELIMARTE, NJ
- ST.PAUL-NYCONTER, NY
- ST.PAUL-PORAPMT, VA
- ST.PAUL-PORNIT, VA
- ST.PAUL-PTNEWTERM, NJ
- ST.PAUL-NORINTERN, VA
Get a full range of intermodal and ground transportation options with GEODIS. Talk to one of our transportation experts today.
6: Understand that options to redirect freight via Canada and Mexico may be limited
Unfortunately, rerouting alternatives via Canadian and Mexican ports are limited.
- Ports in Mexico and Canada are unlikely to have sufficient space or terminal capacity. As of 10/1/24, Reuters reports that the Montreal, Canada, port workers began a three-day strike on September 30th.
- Some carriers do not offer rail deliveries from Canada or Mexico into the U.S.
- Intermodal routes between Mexico, Canada, and the U.S. are at limited or at full capacity.
- Rerouting to Canada or Mexico could result in additional transit times of 7-14 days.
- Rerouting to Canada or Mexico could increase costs by between $1,200 and $2,000 USD per FEU for the port-to-port part.
7: Prepare for higher capacity pricing rates
Depending on how long the strike will last, the congestion and delays caused by the strike may cause rates to increase across the industry.
8: Expect increased freight and container fees
In addition to increased capacity pricing, container loading, unloading, and handling delays will increase container fees. Your per diem, demurrage, detention, chassis, storage, and pre-pull fees are also likely to increase.
Work with your freight forwarder and container leasing companies to understand your Incoterms. This will help you get on top of your container costs to minimize them wherever possible. You can get ahead of these charges by:
- Emptying and clearing your containers as quickly as possible.
- Retrieving and returning containers as soon as possible.
- Keeping detailed records of appointments for container pickups and returns.
Informing carriers if you can’t retrieve or return containers.
9: Understand vessel, cargo, and financial repercussions
Here is our understanding of the increased fees and charges associated with the current ILA strike. Please note that these charges and other factors can change quickly. Check with your freight forwarders and carriers to get the latest information on rates and other impacts on your shipments.
Financial Responsibility:
- On-forwarding of cargo: If a vessel is rerouted, the responsibility for on-forwarding costs would typically depend on the Incoterms agreed upon in the sales contract. The buyer may be responsible under certain Incoterms (like FOB), while the seller might bear the cost under others (like CIF).
- Storage and demurrage: The responsibility for storage and demurrage charges would depend on the Incoterms and any specific contractual agreements between the shipper and the importer.
Force Majeure and obligations:
- Force majeure consideration: A strike could be considered a force majeure event, depending on the specific circumstances and the contract language.
Shipper and importer obligations: Even if a strike is considered force majeure, both the shipper and the importer would still have certain obligations. These could include:
- Shipper: Mitigating delays and damages where possible, communicating with the importer about potential disruptions, and exploring alternative shipping arrangements if necessary.
- Importer: Cooperating with the shipper to minimize losses, accepting delivery of cargo if it becomes available, and paying any applicable charges as per the Incoterms and contract terms.
Ocean Network Express Pte. Ltd. (“ONE”) has declared force majeure on shipments that were scheduled for discharge at United States East and Gulf Coast ports.
- The American Journal of Transportation reports that CMA CGM has declared force majeure on operational costs associated with vessels delayed on the water as of October 1 for discharge at U.S. East or Gulf Coast ports of discharge.
- COSCO SHIPPING Lines Co., Ltd. declared force majeure on October 2, related to Clause 20 of their Bill of Lading.
Incoterms and impact:
The specific Incoterms used in the sales contract would play a significant role in determining the allocation of risks and responsibilities between the shipper and the importer in the event of a strike. It's essential to review the Incoterms carefully and understand their implications in this context.
Position of terminals and shipping lines:
- Demurrage, storage, and detention: terminals and shipping lines generally maintain their right to collect these charges even during a strike, as they continue to incur costs for providing storage space and equipment.
- Historical precedent (last ILA strike): In previous ILA strikes, terminals and carriers typically did not waive these charges, and the financial burden ultimately fell on either the buyer or seller, depending on the Incoterms and any contractual agreements.
- Potential for negotiation: In some cases, there might be room for negotiation or partial waivers, especially if the strike is prolonged or significantly impacts cargo flow. However, this is not guaranteed, and parties should be prepared to potentially bear these costs.
10: If you haven’t already please start working with your freight broker to minimize additional costs and downtime
Here at GEODIS, we’re experts in freight forwarding, trade services, and risk mitigation. We’ll help you navigate supply chain disruptions, find the best rates, and get your international cargo to its destination. Talk to us to minimize your downtime and reduce your costs—whether that’s due to the ILA strike, or for any unforeseen future events.
Consult with our freight forwarding experts at GEODIS and get advice on every aspect of your international freight and fees.
Stay updated on the ILA strike and other potential disruptions
For the latest on the ILA strike and any other supply chain disruptions, visit and bookmark our customer advisory page.
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GEODIS is a leading freight forwarder and transportation logistics provider. We'll help you deal with any disruption due to strikes, geopolitical issues, environmental disasters, and other unforeseen events. Get in touch and discover how we can build resilience in your supply chain.
