Drayage during an ILA protest could face significant disruptions, with the deadline being less than a week away. On October 1st, the International Longshoreman Association (ILA) plans to strike across East and Gulf Coast ports. Talks with the United States Maritime Alliance (USMX) for better contracts have stalled, with the contract ending on September 30th. In particular, they are protesting for higher wages, better pensions, and against using automation at ports for cranes and gates. While this will directly impact international shipping, a strike will also affect moving cargo domestically. Drayage, the transport of containers by land over short distances, could primarily feel its impact on domestic shipping.
What Should You Know When Doing Drayage During The ILA Protest?
As previously mentioned, drayage is the movement of containers over short distances, such as from a port to a warehouse. Shippers that bring cargo into and out of the U.S. rely on this service for their supply chains. The ILA is a union of over 65,000 dockworkers that assist in drayage services by loading and unloading carriers. A coastwide strike will severely impact shippers and carriers that offer drayage. One primary effect is that East and Gulf Coast ports will shut down, halting cargo movement. Ships importing shipments won’t be able to dock and unload. For trucks picking up containers, this leads to longer wait times, causing delays in the supply chain.
Delays can come from congestion that happens when ships pile up at a port that does not have workers. Drayage providers then feel the backlog, which could take weeks to clear. Longer wait times also come from reduced container availability. To account for the disruptions, carrier companies may increase costs, which the shipper feels. Along with higher container fees, drayage companies raise demurrage, chassis, per diem, pre-pull, and other charges. It is also essential to note that a potential strike can lead to capacity constraints. Carriers backlogged by port shutdowns may become overbooked and unable to take more customers. In turn, it would be harder for shippers to find transportation for freight movement.
How Can You Protect Your Cargo?
With October 1st quickly approaching, ports, shippers, and carriers are taking steps to mitigate potential disruptions. Various ports affected by the strike announced they would extend gate hours for trucks days before the protest. The East and Gulf Coast ports have also released contingency plans in case of a protest. Drayage companies are finding ways to minimize a strike’s impact by accelerating container movement before the October 1st deadline. They keep close communication with shipping lines and give customers constant updates on the situation’s status. Shippers relying on drayage services for import and export from the U.S. are also taking steps to protect their cargo.
Shippers are mitigating the effects of a strike by rerouting their cargo to West Coast ports. While this can extend drayage times and be more costly, it can be a better alternative than a shutdown port. Another way to protect your freight is by using the assistance of a freight broker. Brokers are the middlemen between the shipper and trucking company and coordinate the shipment’s movement using a carrier network. A1 Worldwide Logistics has brokers and more solutions for navigating a potential coastwide strike. Speak to our freight brokers at 786-375-9420 or info@a1fsinc.com to ensure the delivery of your cargo.