ILA strike in effect: Navigating disruption amid labor disputes

View the latest update here: Tentative agreement reached between ILA and USMX

Published October 1, 2024

On October 1, 2024, the International Longshoremen's Association (ILA) launched a strike, shutting down 36 U.S. docks stretching from New England to Texas and stranding billions in trade.

In the days leading up to the strike, the United States Maritime Alliance (USMX) filed an unfair labor practice charge against the ILA, accusing the union of bad faith negotiations and seeking injunctive relief to force dockworkers back to the bargaining table. Despite a USMX offer that included nearly a 50% wage increase, the ILA rejected the proposal, citing unresolved issues with wage stagnation and automation. As of September 29, 2024, CNBC reported that the U.S. Administration does ‘not intend to prevent a port strike’, by imposing an 80-day cooling-off period under the Taft-Hartley Act.

Impact on supply chains

The impact of the supply chain is estimated to effect 43% - 49% of all U.S. imports and billions of dollars of trade, which move monthly through the U.S. East and Gulf ports. Sea Intelligence has estimated that for each day of a strike, it would take four to six days to clear the backlog. In addition, the closure of the ports will also have an effect on dock-rail operations, indicating that cargo will not move in or out of any ports affected by the strike action via rail. Lastly, ships routed to U.S. East Coast and Gulf ports will remain at anchor offshore until the ports are open once again and they can discharge their cargo.

What to prepare for?

Considering the ongoing ILA strike, it's important to assess your inventory currently in transit. Identify any critical components that may require urgent replacement and explore alternative shipping options, such as airfreight, sea/air routes, or alternate ports, to minimize potential delays. Another option is to wait for further negotiations during the strike's duration for goods currently in transit. Although this might be a viable option for goods that do not post a critical delay to your supply chain, it is also prudent to consider spreading new orders across varying modes of shipments at various entry points to reduce long-term disruption risk.

How DSV can assist

At DSV, we are actively working with our clients to mitigate our client exposure to risk. We offer significant uplift options, including airfreight or sea/air combination routes, to ensure your cargo reaches its destination with minimal disruption. For tailored contingency plans that address your unique needs, contact your local DSV representative to discuss the best alternatives.