With negotiations remaining stagnant as the deadline nears, shippers may soon see the ILA strike affecting trucking. On September 30th, a six-year contract between the International Longshoreman Association (ILA) and the United States Maritime Alliance (USMX) terminates. Unresolved talks for a better agreement between the parties may result in a strike in protest on October 1st. The ILA is a union of 85,000 longshore workers across East and Gulf Coast ports. A coast-wide protest could significantly impact supply chains that import and export out of the U.S. While a potential strike affects moving cargo internationally, it can also impact domestic shipping.
How Is The ILA Strike Affecting Trucking?
If the ILA goes on strike, it can impact trucking in numerous ways. A typical supply chain tends to have multiple components, including transport. When a carrier moves goods internationally by sea into a U.S. port, the importer typically uses a truck to transport them to their final destination. When a port shuts down, the most significant effect is increased delays, resulting in longer shipping times. Delays also come from shippers having to reroute cargo to different ports. This is an issue for the ILA since most East and Gulf Coast ports contain workers. Nearby truckers may have to go to West Coast ports instead of East Coast ports, increasing delivery times.
On a large scale, rerouting due to port shutdowns can cause supply chain bottlenecks that take a while to clear. An analysis notes that a strike of two weeks could result in slowdowns to 2025. The congestion in other ports due to the shutdown will also increase trucking costs. Rates have surged over the past year and may continue as we enter the peak season. Congestion leads to demurrage charges, too, which is a fee for a container overstaying its allotted time in a port. If the carrier moving the shipment domestically is part of a larger company importing products, delays may look unfavorable to the customers.
How Are Shippers And The Trucking Industry Preparing?
As October 1st quickly approaches, shippers are already finding solutions for protecting their shipments. They are planning to move their cargo before the date arrives. Along with importing and exporting, this also includes transporting the goods domestically by truck. Shippers are also building relationships with truckers beforehand to have ideal rates if the strike does occur. The trucking industry is also preparing for the port strikes in various ways, such as diversifying routes and ports. Along with allowing for more options, this is to mitigate potential disruptions. Specific companies that move products to customers by truck are also backing up on inventory and financial reserves.
A1 Freight Solutions
Another way to prepare is by using the assistance of a freight broker. Brokers act as the middleman between the shipper and the carrier and coordinate the movement of goods. Not only do they negotiate rates for the shipper, but brokers have a network of carriers for moving the cargo. In a scenario like a port strike, they determine the best course of action to take. Contact A1 Freight Solutions at 786-375-9420 or info@a1fsinc.com for assistance with domestic shipping. Regardless of the situation, we have various solutions to meet your goals.