Temporary resolution for US East Coast port strikes; January uncertainty looms

After three days of major disruption, the strike at US East and Gulf Coast ports, led by 45,000 dockworkers, came to a temporary resolution on Thursday 3rd October.

A tentative agreement reached between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) grants a 62% wage increase over six years and extends the current contract until 15th January 2025 to resolve remaining issues such as port automation..

The strike, which began on 1st October 2024, impacted 36 key ports, leaving 50 vessels waiting offshore, with another 100 en-route and affecting supply chains worldwide.

Despite the end of the strike and the return of dockworkers today, the congestion it caused will take weeks to clear, and rates are already rising, especially on Asia-US routes. The possibility of another strike in January could worsen the situation.

Additionally, carrier surcharges are expected to remain in place on all cargo to and from the US for the time being.

We continue to monitor developments closely and will work proactively to manage logistics on behalf of our customers, ensuring your supply chain stays resilient.

Outlook for January 2025
If the ILA and USMX fail to reach a final agreement by January, the resumption of the strike could lead to significant global supply chain disruptions. Nearly 50 vessels were affected during the initial strike, and this number could rise, with an estimated 2.22 million TEU of cargo capacity tied up by the end of the month if no resolution is found.

To discuss the issues raised here and how PSP Worldwide could protect your supply chain, please EMAIL our managing director, Colin Redman.