10/04/2024
ILA Strike Challenges - Dealing with Port Disruption
There's a possibility that the International Longshoremen Association will strike again due to disputes about port automation. Here's our comprehensive guide to dealing with future port disruption.
The ILA may strike again over automation disputes
New challenges have emerged in the negotiations between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX). In November 2024, the ILA walked away from negotiations over disagreements about port automation. This puts the January 15, 2025 resolution deadline at risk.
This follows previous strike action from the ILA that was temporarily resolved. The strike ran from October 1 through October 3 2024, shutting down ports on the East and Gulf Coasts. As of mid-October, further strike action was suspended for 90 days, until January 15, 2025. In the meantime, the ILA and the USMX are continuing to negotiate a new contract.
Following the resolution of the first period of strike action, ports have reopened. The strike shut down 36 U.S. ports and significantly disrupted U.S. and international supply chains. It’s estimated that the strike cost the U.S. economy around $5 billion a day.
In the rest of this guide, we’ll discuss the strike's impact, explain what happened, and highlight how shippers, carriers, and others can reduce the impact of industrial actions in future.
Latest updates in ILA-USMX negotiations
- The path to a final agreement has hit significant obstacles
- The ILA has suspended negotiations with USMX over disagreements about port automation
- The union opposes the addition of new technology at East and Gulf Coast ports
- USMX maintains that no jobs would be eliminated through automation
- The tentative agreement includes a 62% pay raise over six years for the ILA's 45,000 dockworkers
- The January 15, 2025 deadline for finalizing the agreement remains critical
Historic impact of the East Coast ILA strike on container shipping and cargo handling
The risk of future disruptions remains significant. ILA President Harold Daggett says that the union is willing to persist in strike action to achieve its demands, especially regarding automation restrictions. The unresolved dispute about automation puts the January deadline at risk, with the ILA opposing new technology implementation while USMX argues that modernization is essential for worker safety and port efficiency.
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. The impact of the three-day strike was:
- 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.
- Impacted all types of cargo, including containerized, breakbulk, and roll-on, roll-off (ro-ro).
- Major disruptions to cargo already on the water that was inbound to affected ports.
- Carriers rerouted vessels to avoid potential delays or disruptions at affected ports, resulting in longer transit times and additional costs.
- 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.
Halting of exports, causing the need for short-term storage in and around ports.
The strike action 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 did act quickly.
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 port shutdowns
We’ve identified ten main ways that you can minimize the impact of future East Coast and Gulf Coast port shutdowns on your operations:
- Divert your shipments to alternate West Coast ports.
- Prepare for significant congestion at U.S. West Coast ports.
- Realize that freight in transit to East and Gulf Coast ports would 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 as soon as you hear about the disruption to minimize costs and downtime.
Support for existing GEODIS clients
If you’re already a GEODIS client, we’ll minimize any further disruptions within our control. We’ll keep you updated on any future 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 did not and will not add any profit to the surcharges passed along to our clients. We understand the complex situation this strike created 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
If your future shipments aren’t time-constrained, you’d want to delay shipping freight until after potential 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 did need to send your freight urgently, avoid shipping by ocean to East and Gulf Coast ports. Alternative options would 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
If you do redirect to West Coast ports in the future, you should expect significant congestion and delays, especially if any strikes or disruptions are industry-wide. Many West Coast ports would already be operating at full capacity, so they would become congested very quickly.
Be aware that:
- Redirected cargo from East Coast and Gulf Coast ports could be subject to embargo in the future and could be refused, which would delay or prevent arrival and unloading.
- Carriers could decide to “slow steam,” which would extend transit times. Carriers may also need to anchor outside ports, further exacerbating delays and congestion.
- Storage, capacity, and inbound / outbound routes would be at a premium for West Coast ports, leading to delays and higher costs.
- Extensive wait times are very likely when docking and unloading as West Coast ports work through the congestion.
- You could 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 would deal 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 would be drastically delayed
Future ILA strikes would shut down container ports from Maine to Texas across the East and Gulf Coasts. It would impact major ports including Charleston, Houston, Miami, New Jersey, New York, and Savannah.
Clicking on the port city names will allow you to see their daily updates and contingency planning reports. Many would expand hours and offer extended gate times.
Freight in transit to these entry points in future could be severely delayed:
- Ships would not be able to dock and unload until the strike is resolved.
- Expect follow-on delays as ports cleared 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 announced a $3,000 USD per FEU named port charge for all cargo destined to East Coast and Gulf ports in the U.S. during the recent strike. Be prepared for additional surge rates during future industrial action.
Get updates directly from marine terminal websites
You could 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 would 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 any industrial action, carrier capacity will fill up very quickly, resulting in higher rates and transportation delays. Please be aware that your 3PL provider would:
- Continue to support freight that exited East and Gulf Coast port terminals before any strikes begin.
- Would be available to help transport freight stuck in ports once the strike ends.
- For West Coast ports, transportation providers and ground carriers would be dealing with extensive demand and congestion, which will cause delays.
- Capacity would fill up very quickly, resulting in higher costs.
For rerouted West Coast shipments, you could transfer your landed cargo via intermodal and ground freight. For shipments destined for the East Coast or Gulf Coast ports, the only action would be to wait.
When you land your cargo in the U.S., you would need to get your containers to their destination. GEODIS is here to support you now and in the future. 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 45,000 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 future options to redirect freight via Canada and Mexico may be limited
Unfortunately, rerouting alternatives via Canadian and Mexican ports in future could be limited.
- Ports in Mexico and Canada would be unlikely to have sufficient 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. would be at limited or 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 future strikes last, the congestion and delays caused by the strike could 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 would increase container fees. Your per diem, demurrage, detention, chassis, storage, and pre-pull fees would also be 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 could 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 an example of the increased fees and charges associated with the most recent ILA strike. Please note that these charges and other factors can change quickly, so you’ll always want to 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.
Here are some examples of force majeure declarations by various ocean carriers during the most recent ILA strike
- Ocean Network Express Pte. Ltd. (“ONE”) declared force majeure on shipments scheduled for discharge at United States East and Gulf Coast ports.
- The American Journal of Transportation reported that CMA CGM 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: Talk to your freight broker about minimizing possible future 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 further industrial action, 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 supply chain disruptions
For the latest on current or future strikes 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.
