The contract for the International Longshoreman Association (ILA) expires on September 30, 2024. While we cannot predict the future, we want to ensure that you are prepared for the possibility of a work stoppage or strike. We outline below some outcomes to consider should this event transpire:

  • Expect significant delays at East Coast and Gulf Coast ports.
  • Full shutdown of loading, unloading, and container handling activities may occur.
  • Cargo already in route to affected ports could face major disruptions.
  • Carriers may reroute vessels to avoid delays, potentially leading to longer transit times and increased costs.
  • If operations are halted due to a strike, cargo may become stranded at ports, resulting in higher fees.
  • Anticipate rising freight and container-related costs, including storage, per diem, demurrage, detention, chassis, and pre-pull charges.

Please also note that the U.S. Federal Maritime Commission (FMC) has issued official notice to the shipping industry that all FMC statutes and regulations will remain in full effect if a work stoppage occurs at East and Gulf Coast ports starting Oct. 1. The FMC has instructed its Bureau of Enforcement to investigate any violations. Carriers and terminal operators must comply with tariff, service contract, and fee regulations, including ensuring that demurrage and detention charges are reasonable and clearly defined. Instructions on reporting unlawful actions and filing a complaint can be found at the bottom of the official notice.

Shapiro will continue to monitor the situation and provide status updates as they become available.