The recent strike by 45,000 US East and Gulf Coast dockworkers, which began on 1st October 2024, has been temporarily resolved after three days of disruption, but concerns remain.
The strike affected 36 major ports, including New York, Savannah, and Houston, leaving 50 vessels stranded offshore, with another 100 en-route.
The tentative agreement 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. This provides additional time for further negotiations on contentious issues like port automation. However, should an agreement not be reached by January, global supply chains could face renewed disruptions, especially during the post-holiday season.
The length of time required to clear the backlog remains uncertain, and the resulting congestion could persist well into Q4. Additionally, carrier surcharges are expected to remain in place on all cargo to and from the US for the time being.
Carriers invoked force majeure this week, a contractual clause that allows them to suspend or alter their obligations due to uncontrollable events like the strike. For shippers, this meant that their goods could be rerouted to non-US ports or left at unexpected destinations, adding significant costs for retrieval and storage. The declaration of force majeure has underlined the critical importance of securing comprehensive marine insurance.
We remain dedicated to supporting our customers, providing proactive updates, and ensuring smooth logistics management during these uncertain times to minimise the impact on your supply chains
EMAIL us today to learn how we can help you safeguard your supply chain and minimise the impact of ongoing disruptions.
