Dear Valued Customer,
Here we go again!
According to our industry sources it is becoming more likely that the ILA will stage a second strike on January 15, 2024. If a strike occurs it will shut down all U.S. East and Gulf Coast ports until further notice. This means that no cargo will be able to move in or out of any port along the Atlantic Ocean and Gulf of Mexico.
To understand the potential impact, one measure that is currently being used in the industry as a frame of reference is that for every week the strike persists there will be one month of backlogs and congestion. In other words, if the strike lasts three weeks there will be at least three months of backlogs and congestion.
As a result, clients with cargo already in transit to U.S. East and Gulf Coast ports should expect to have their cargo trapped at sea well past the duration of the strike. Additionally, clients with containers in any of the U.S. East or Gulf Coast ports are highly encouraged to get them out before January 15, 2025, otherwise the containers will be stuck in the ports for an indeterminate amount of time and may be subject to detention and demurrage charges. Also, it is possible that carriers will not cover or reimburse any chassis or other third-party charges connected to the work stoppage. Finally, regarding empty container returns, while each carrier has its own policy, you should assume that you may have to pay a fee.
While a strike is imminent, you may be able to minimize its impact on your business. Please reach out as soon as possible to your logistics advisor who can leverage our global network to help you minimize any financial burden your business may incur because of the strike.
In the meantime, please reach out to your customer services representative if you have any questions or concerns.
Thank you.
Sincerely,
OEC Group
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