Operations at US East and Gulf Coast ports have resumed following the three-day strike by dockworker members of the the International Longshoremen’s Association (ILA) that ended on the 4th October 2024.
Port officials are confident that the backlog created by the strike will be cleared within days, rather than weeks.
With over 60 ships backed-up during the strike, ports have been working hard to clear the backlog and are aided by spare capacity, which has been created by shippers front-loading and cargo diversions.
In many cases the ports have extended operational hours to process delayed vessels, ensuring that the backlog will not stretch far into the busy holiday season.
The agreement between the ILA and the United States Maritime Alliance (USMX) brings temporary relief, securing peace for the next three months. The wage increase of over 60% marks significant progress, but the contentious issue of automation remains unresolved and could lead to further disruptions when the current contract extension expires on 15 January 2025.
The ILA has been vocal in its opposition to automation projects that threaten dockworker jobs, while the USMX wants to retain the right to pursue semi-automation with union consent. Failure to reach a resolution on this issue before January could reignite the strike and disrupt supply chains during the crucial post-holiday period.
Situation summary
While ports up and down the coast are managing the backlog efficiently, the short duration of the strike and reduced volumes in the lead-up have helped mitigate the impact for many.
New York & New Jersey: The port, which experienced the largest backlog with 19 ships anchored offshore, is expecting to clear the congestion within a week. Port officials are optimistic, citing past experience with similar shutdowns and emphasising that the backlog amounts to only one week’s volume. Extended hours have been implemented to speed up the process.
Savannah: Operations resumed without significant delays. The Georgia Ports Authority reported no truck queues and has offered weekend gate hours to ensure the backlog clears quickly. Nine ships were anchored outside the port last Friday.
Houston: The port, heavily impacted by the strike, is now working to integrate delayed vessels into its schedule. Officials expect operations to normalise soon, though there is no firm estimate for when the backlog will be cleared.
Baltimore: Similar to other ports, the operational impact was likened to that of a weather disruption. The Maryland Port Administration extended hours to include Saturday operations to deal with delayed vessels. The backlog is expected to be resolved within a week.
Virginia: The port is working to return to normal operations within 24 hours. The reservation system is open, and components of operations are being restarted in parallel.
We will continue to monitor the situation closely and provide regular updates. As always, we are in direct communication with ocean carriers to ensure your cargo continues to move efficiently, even during challenging periods.
EMAIL Andy Costara today to learn how we can safeguard your supply chain and minimise the impact of ongoing disruptions.
