09/20/2024
ILA Strike - Your Guide to Dealing with Port Disruption
The International Longshoremen Association is likely to strike on October 1, 2024, shutting down many U.S. ports. Here's our comprehensive guide to dealing with the disruption.
The International Longshoremen’s Association (ILA), a large maritime worker’s union in the United States, will likely go on strike in October 2024. This strike will shut down many U.S. ports and significantly disrupt 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.
An ILA strike is increasingly likely
The ILA is currently negotiating with the United States Maritime Alliance (USMX), but talks have stalled over key issues, including wages and automation. The two sides have until 30 September 2024 to reach an agreement, or the ILA will begin their strike on 1 October 2024.
It’s unlikely that the ILA and the USMX will resolve their differences in time. Here’s how you can prepare your business for the strike and minimize disruption to your supply chain.
The impact of an 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. If the ILA does strike, the impacts will be:
- A complete shutdown of loading, unloading, and container handling for more than half of U.S. container volume.
- Significant delays at ports, specifically East Coast and Gulf Coast entry points.
- 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.
- Longer cargo transit times and additional costs.
- Ocean carriers placing an embargo on cargo coming from the East Coast.
- If operations are halted due to a strike, cargo could become stranded at the port, 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 will effectively bring more than half of the United States’ container operations to a complete halt, leaving goods stuck on ships and in ports. Importers, exporters, shippers, carriers, and others need to act now.
GEODIS can help.
GEODIS is ready to help you deal with supply chain disruptions. Discover how we build risk management and resilience into your supply chain.
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:
- Delay shipping freight from your port of origin until after the strike.
- 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.
- 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 fee increases and work with you to reduce those fees wherever possible.
Bookmark our customer advisory page for regularly updated information.
1: Delay shipping freight from your port of origin until after the strike
You’ll want to delay shipping freight until after the ILA reaches an agreement and any strike actions are resolved. Any freight leaving after September 20 will likely arrive in October and will be impacted by the strike.
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 becoming congested very quickly.
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 will shut down container ports from Maine to Texas across the East and Gulf Coasts. It will impact 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 will be severely delayed:
- Ships won’t be able to dock and unload until the strike is resolved.
- 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. If the strike is declared, we anticipate a 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 and ground freight
During the ILA strike, carrier capacity is likely to fill up very quickly, resulting in higher rates and transportation delays. Please be aware that:
- We’ll be able to support freight that has exited East and Gulf Coast port terminals before the strike starts on October 1.
- If freight hasn’t exited the terminal by then, we’ll be available to help with transportation once the strike ends.
- For West Coast ports, transportation providers and ground carriers will need to deal with extensive demand and congestion, which could lead to possible delays.
- Capacity is going to fill up very quickly, resulting in higher costs.
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.
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 may be limited.
- Ports in Mexico and Canada will likely have insufficient space or terminal capacity.
- Some carriers do not offer rail deliveries from Canada or Mexico into the U.S.
- Intermodal routes between Mexico, Canada, and the U.S. may be 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
The congestion and delays caused by the strike will cause rates to increase across the industry. Some of the areas where you’re likely to see higher costs include:
- Shipping lines announcing a $3,000 USD per FEU named port charge for East Coast and GUlf Coast ports.
- Port-to-port rerouting costs of $1,000 - $2,000 USD per FEU.
- A $20 per W/M fee for East Coast and Gulf Coast ports.
Capacity constraints increasing spot and on-demand rates for all modes of transport: Drayage, rail, air, intermodal, FTL, and LTL.
Any excess capacity will go to the highest bidders, so shippers should plan accordingly. We’ll notify you of any impacts or freight charges that GEODIS manages on your behalf.
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 before the strike starts on October 1.
- Keeping detailed records of appointments for container pickups and returns.
- Informing carriers if you can’t retrieve or return containers.
Filing complaints and invoices with the FMC
9: Understand vessel, cargo, and financial repercussions
Here is our understanding of the increased fees and charges associated with the impending ILA strike.
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.
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: Start working with your freight broker now to minimize 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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