After weeks of warnings by the International Longshoremen’s Association (ILA), the East Coast port strike begins. On midnight, October 1st, ILA dockworkers began protesting, resulting in shutdowns in East and Gulf Coast ports. Their six-year contract with the United States Marine Alliance (USMX) ended, and they are protesting for a new contract. In particular, a contract with sizable wage hikes of $5 an hour over six years and better pensions. The ILA is also fighting against automation at ports like cranes and gates, which they believe will replace their jobs. Due to the amount of freight that passes through the ports, the strike will directly impact international and domestic shipping.
What Does This Mean For International And Domestic Shipping?
The ILA is a union of over 45,000 dockworkers at 36 ports across the East and Gulf Coast. These ports handle nearly 43% of all imports coming into the U.S. A stoppage of ports across the East Coast will result in import congestion. Analysts report that if ports shut down for one day, it could take three days to clear. They also note that a two-week strike may result in slowdowns until 2024. This can delay importers’ supply chains, which may have other repercussions, such as monetary loss and unsatisfied customers. Delays could create a scarcity in U.S. markets, causing the prices of different products to rise.
Shipments that move internationally also tend to require domestic shipping. For example, shippers use trucks to drop off containers at ports or move them to the final destination. Due to this, a strike can have numerous implications for the trucking industry. Drayage, which is the transport of goods short distances, is one of the primary services affected by the protest. Port shutdowns will result in longer delivery times, and truckers cannot load or unload carriers. Like international shipping, this could result in fewer available shipments and other supply chain disruptions. Moving goods by truck can also increase by extra expenses and higher container rates.
How Can You Safeguard Your Shipment As The East Coast Port Strike Begins?
With ports across the East and Gulf Coast shutting down, it is increasingly vital to protect your shipment. In domestic shipping, it can be ideal to work with reliable carriers with delays experiences. Trucking companies understand the severity of the problem in the supply chain and offer services like expedited shipping. Another way to safeguard your cargo is by rerouting your goods to other ports. Rerouting can have different issues, like delays; however, it may be a better alternative than waiting. It is vital to plan for delays beforehand and communicate the expected waits to the players in the supply chain.
Another way to safeguard your shipment as the strike begins is by speaking to a freight broker. Brokers are the middlemen between shippers and carriers who coordinate the domestic transport of your cargo. A1 Freight Solutions has freight brokers connected to a network of carriers prepared to transport your goods anywhere domestically. Transparency and communication are core beliefs that we abide by. Contact A1 Freight Solutions at 786-375-9420 or info@a1wwl.com regarding shipping your cargo. We keep you updated on your shipment’s transport and give solutions for navigating situations like a port protest.