ILA Strike Update

The potential for an East Coast ILA strike is getting very real. We are just a few days away from the September 30 contract expiration between the ILA longshoremen union and the management/USMX. Currently, there isn’t any progress or any breakthroughs reported in the negotiations. The last update on the USMX website on September 23 stated “Despite additional attempts by USMX to engage with the ILA and resume bargaining, we have been unable to schedule a meeting." The ILA in turn posts statements indicating the USMX is conducting a “weak publicity campaign against ILA." The ILA is posting that they will continue to handle military cargo and work passenger cruise ships.

Ocean carriers are limiting certain types of bookings and East Coast ports have just announced operational contingency plans in case of strike action. Additionally, most ocean carriers have preemptively announced surcharges ahead of the anticipated disruption. A full list can be provided upon request. The good news is that most terminals and ocean carriers have announced that the free time clock will be suspended during a work stoppage, hopefully minimizing demurrage and detention should containers be stuck inside or outside terminals. The bad news is that every day of work stoppage creates additional trickle down impact that will affect cargo flows for months.

US Customs/CBP held an industry call this morning to let all stakeholders know that they are preparing for issues that will arise should the strike occur. While they could not answer all of the questions posed, they are fully prepared to assist importers and brokers throughout any disruption and advised that they will be publishing a CSMS/Cargo System Messaging Service update addressing concerns on cargo diversions and other potential impacts that could affect customs entry filing. We will circulate the CSMS when it is published.

Railroads have announced their deadlines for cargo acceptance ahead of the strike with many ceasing to accept cargo by Wednesday or Thursday of this week. With strike action, the challenge facing the rail will be finding space to store all the containers pending shipment. Please see the attached article from JOC for more information.

East Coast ports have announced contingency operating hours head of the strike. Some have announced Saturday hours to help push through containers at port. Especially important to note is that there will be no staff on terminal to monitor or adjust refrigerated containers left on terminal after Monday, September 30, 2024. General port details can be found below, but visit the port websites for specifics or contact us and we will send you the information:

Port NY/NJ: Cargo operations will stop 9/30. APM, Maher and PNCT terminals will have Saturday 9/28 gate hours to help process as much cargo as possible ahead of the strike. The full update with terminal times attached here. 

Port of VA: Cargo operations will stop at 1pm on 9/30.

Port of New Orleans: Cargo operations will stop 9/30, but Saturday hours are in place 9/28.

Jacksonville & Mobile: strike conditions are being monitored, but customers should contact their terminals directly for updates.

Port of Houston: Normal operations expected until 9/30 at 11:59pm.

In addition to work stoppages, US South Florida ports are dealing with the impending Hurricane Helene that is set to hit the Florida panhandle today. A 20-foot storm surge is possible along the Big Bend of Florida and life-threatening winds are expected in northern Florida, Georgia and the Carolinas with major flooding possible all the way into the Carolinas. Ports that are closed today, September 26, 2024: Canaveral, Fernandina, Jacksonville, Key West, Fort Myers, Manatee, Sarasota, Panama City and St. Petersburg in Florida. Port Mobile (Alabama), Pensacola (Florida), and Brunswick and Savannah in Georgia are open with restrictions. Individual status updates can be found on each port’s website.

On top of the US strike issues, Montreal longshore workers voted in favor of granting their union the authority to call a strike if it chooses to do so. The union would need to issue a 72 hour notice, but could do so at any time, leading to a work stoppage at the port of Montreal. The vote comes after nearly a year of ongoing unsuccessful contract negotiations. If this does happen, this will present some challenges with any re-routed cargo, with Halifax being the only EC Canadian port to be fully operational should an ILA strike take place. For the full update on Montreal, please see the attached article from the Montreal Gazette.

We will continue to provide updates on the situation as information becomes available. Should you have any questions, please reach out to us.