Dear Valued Customer,

It is becoming more likely that the ILA will stage a strike when its contract runs out at midnight on October 1, 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 will in all likelihood, in the short term, have their cargo trapped at sea. If the strike persists carriers could declare “Force Majeure” and unload all cargo bound for U.S. East and Gulf Coast ports at a neighboring international port .

Additionally, clients with containers in any of the U.S. East or Gulf Coast ports are highly encouraged to get them out before October 1, 2024 otherwise the containers will be trapped in the ports and you may be subject to detention and demurrage charges. Also, 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 .

Finally, any client with cargo ready to be loaded for transport to a U.S. East or Gulf Coast port is encouraged to reach out to their logistics advisor to discuss the viability of rerouting their cargo to a West Coast port.

While it appears that a strike is imminent, you still have the ability 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 the strike creates for your business.

In the meantime, please reach out to your customer services representative if you have any questions or concerns.

Thank you!

Sincerely, 

OEC Group