Notice of Potential Port Strike in the U.S.

As you probably know, there is a significant risk of a strike at U.S. East Coast ports. The agreement between the ILA union and USMX expired on September 30, and negotiations have yet to yield a deal. A strike could begin as early as today, October 1, and could potentially lead to major disruptions in global sea freight, especially for U.S.-bound goods.

Many vessels are already headed for the U.S. East Coast and cannot turn back, potentially causing vessels to be stranded outside ports that are closed. This could create delays on other shipping routes as well. Redirecting ships to Canadian or Mexican ports may be an option, but those ports will struggle to handle all the cargo at the same time, leading to further delays.

The potential strike could result in port congestion, higher costs for terminal and container rentals in the U.S., and delays in vessels returning to Asia for their next trips.

While a strike seems likely, maritime economist John McCown remains hopeful that it won’t be long-lasting, citing the serious economic damage it would cause. If no solution is reached, President Biden could invoke the “Taft-Hartley Law,” forcing the union to end the strike. Both sides may wish to avoid that outcome, but it is still a possibility.

We are working closely with our U.S. partners to manage the situation and will keep affected customers updated.

Port Strike In Montreal

Additionally, a strike is currently underway at two terminals in Montreal, expected to last until October 3. Efforts to prevent it have been unsuccessful.

For any questions, please feel free to contact us.

Sincerely,
C Land Logistics